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Unfortunately, this deal expired 03.03.2024
2 months ago

XIX Century Alley

/ max. 111,777 

About This Deal

The project XIX Century Alley from the country Lithuania is raising investments in the amount of 111,777 euros for Real Estate development with an expected annual return of 9.9-11.9%.
The loan term is 7 months, meaning the period for the borrower to repay the borrowed amount and the interest on the loan. In this case, the borrower must repay the loan within 7 months after receiving the loan.
The project's risk level on the platform is indicated as C+. The platform's website states that there are 10 different risk ratings – from "A+" to "D". Projects with ratings "A+", "A", "A-" account for about 9% on the platform, while projects with ratings "B+", "B", "B-" make up the majority at 58%. There are also projects with ratings "C+", "C", "C-", which are fewer at around 30%, and the rest are projects with rating D. Risk ratings of the project are intended to provide a better understanding of the project's riskiness. Ratings A and B indicate that the assumed investment risk is lower than investing in loans with ratings C or D, but the return will be correspondingly lower if you invest in projects with a lower risk level.
The project has a Loan-to-Value (LTV) ratio of 64%, which is within the established maximum value of 70%. Such LTV limits are set to reduce risks for the lender and ensure a more stable financial position of the project. For example, the lower the LTV, the less the risk of default, as the borrower has more equity in the project.
The internal project number is P00000722-19 on the licensed crowdfunding platform Profitus from Lithuania. The platform indicates that they obtained a license in November 2023 from the European crowdfunding regulator ESMA. The ESMA license is quite complex, as out of over 1000 platforms in Europe at the beginning of 2024, only 150 managed to obtain this license.
Please note, the platform states that this information cannot be construed as a recommendation, advice, or invitation to use a specific investment service and is not considered the basis or part of subsequent transactions. Investing always carries the risk of losing part or all of the investments. I agree with the Profitus platform and also recommend approaching investments responsibly by diversifying your investments.