Reasons to invest in the project Old Town Stay, Vilnius IV:
The financed project is located in the Old Town of Vilnius, just a three-minute walk from Vilnius Cathedral;
Interest is payable monthly with a very attractive annual return of 10% – 10.5%, plus additional fixed annual capital gains of +1.5% (payable at the end of the project);
Experienced project owner with more than 10 years of experience in the short-term rental market in Lithuania and abroad;
Projected rental income in 2025 – EUR 270,000, projected operational profit – EUR 101,808;
The maximum loan-to-value (LTV) ratio of this project is 70%;
According to the reports of an independent appraiser, the value of the property has increased from EUR 1,239,900 to EUR 1,509,000 EUR over 7 months;
The project also includes an additional mortgage on an apartment located at Rugių street, Vilnius, valued at EUR 151,000.
The InRento team presents a fourth stage of the buy-to-let project – Old Town Stay, Vilnius IV. The investment offer consists of an authentic two-storey building located in Vilnius Old Town, just a three-minute walk from Vilnius Cathedral at Ž. Liauksmino St. 4, Vilnius.
The financed property has an area of 508.84 m². The project includes 195.41 m² of unfinished attic space and a plot of land. The plan is to make efficient use of all this space by creating 31 rooms. The property is being converted into a small hotel. 10 outdoor parking slots are provided on the site, further increasing the property’s attractiveness.
According to the reports of an independent appraiser, the value of the property has increased from EUR 1,239,900 to EUR 1,509,000 EUR over 7 months.
This change was driven by a series of works that improved the condition of the building – the roof and floor structures were renovated, and new electrical, water supply, and sewage systems were installed.
The electrical capacity was increased from 10 kW to 35 kW, ensuring a reliable power supply. In some rooms, windows were replaced, the floors repaired, and carpet covering added. Ceilings were repaired, and stretch ceilings were installed in some rooms.
Walls were levelled and painted, and sanitary units with showers were installed. Additional rooms were also formed, increasing the property's functionality. Following the completion of these works, the cadastral file was updated.
The owner of the project is Lean capital, UAB. The company's CEO – Lina Baronaitė has more than 10 years of experience in short-term rentals in Lithuania and abroad. As one of the examples, right next door, also in Vilnius Old Town, there is a successfully managed project of a similar concept – Bali house Vilnius, which has fabulous reviews on the Booking.com platform and the yearly occupancy rate for this project ranges from 85% up to 95%.
The project owner plans to generate most of the rental income from this project via Booking.com. The first year of operation will aim for an annual profit of at least EUR 101,808. This provides a high margin of safety, as the projected rental operating profit is more than double the annual interest payable to investors.
The average price of a hotel room for 2 persons near Vilnius Cathedral ranges from EUR 49 to EUR 154 per night (based on Booking.com data as of 11 October last year, analysing rooms with a score between 8.1 and 9.1). Meanwhile, the project owner's planned pricing will be between EUR 40 and 50, which will mean extremely high competitiveness.
Investors will be paid a fixed interest of 10% – 10.5% per annum, depending on the amount invested. The project also has a fixed capital gains of 1.5%, payable at the end of the project, which raises the overall yield of the project from 11.5% to a 12% 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.