P6, Kaunas II
Reasons to invest in the project P6, Kaunas II:
- The financed project is located in Kaunas Old Town;
- Interest is paid monthly with an attractive annual return of 8% – 8.5%, plus an additional fixed annual capital gains return of +1.5% (paid at the end of the project);
- Project owner is an experienced buy-to-let administrator with similar concept projects in other Lithuanian cities;
- Fixed interest linked (indexed) to inflation;
- Loan-to-Value (LTV) ratio for this stage is 59%, maximum LTV for the whole project is 70%;
- According to independent appraiser reports, the property’s value increased from EUR 274,000 to EUR 575,000 over 14 months;
InRento team presents a second stage of the buy-to-let project – P6, Kaunas II. The investment offer consists of a building located in Kaunas Old Town, at D. Poškos g. 6A.
The total financed area of this project is 332.88 m². The first stage, conducted 13 months ago, financed the acquisition of the property. Following the completion of the furnishing works, the second stage is now being financed.
According to independent appraiser reports, the property’s value increased from EUR 274,000 to EUR 575,000 over 14 months.
The increase in value was driven by the installation of room partitions with doors, painted walls and ceilings, as well as the implementation of a new water system, sewage system, heating, and ventilation systems.
As planned, the project owner has fully furnished 16 rooms, including shared areas such as showers, bathrooms, kitchenettes, and lounge zones. The property also includes laundry facilities and a self-check-in system.
This project is focused towards short-term rentals, the lower than average market price of the rooms is expected to generate a greater demand for these rooms.
The owner of the project is Room capital, UAB. The company's field of activity is the development and administration of short-term accommodation projects in Lithuania.
The owners of the company have experience with projects of similar concept. Currently, a similar buy-to-let project is successfully being managed in Vilnius Old Town – Bali House Vilnius, which has excellent reviews on the booking platform and 2023 occupancy rate was as high as 95%.
Investors will be paid an attractive fixed interest rate of 8% – 8.5% per annum, depending on the amount invested.
This project also has a fixed annual capital growth rate of 1.5% payable at the end of the project. This raises the total yield of this phase to between 9.5% and 10% annual return.
Please note that the mortgage for this project signed, thus the interest for this phase will start to accrue to the investors as soon as the money is actually disbursed to the project owner.
The maximum loan duration for this project is only 23 months.
This project has a fixed annual return on capital gains –
The capital gains are fixed and payable together with the repayment of the loan amount for the preceding instalment ("Instalment"), with the return for each successive Instalment being added to the calculation of the return. The Instalment shall be considered as per one calendar year. A fixed increment of 1.5% shall be applied to the Instalment.
Example calculation: If the Loan is repaid after one year, a fixed return of 1.5% applies. If the Loan is repaid after 24 months, a fixed return of 3% applies. If the Loan is repaid after 36 months, a fixed return of 4.5% applies.
The profit margin is payable whether or not the Loan is repaid on the sale of the property.
2025-01-23
The maximum loan term was reduced to 36 months. The project owner undertakes to repay the loan amounts by 22 December 2026.
For further details, please refer to the documents section – Special terms & conditions of the loan annex (1).
2023-12-13
We would like to inform you that the mortgage on the project’s – P6, Kaunas I asset has been successfully placed (the document is attached in the documents section).
The interest for this project will start to accrue as soon as the money is paid to the project owner.
Enabled Projects
Kaunas Lithuania