Loan 8% to land company with low risk profile

Sector example

An established land bank company offers a unique opportunity for investors to participate in its financing structure through a subordinated loan. The company purchases strategically located land with the intention of reselling it after obtaining planning permission or giving it on a long lease/property to sister companies within the group. All transactions are made at a minimum of the all-in cost of the land mine, plus a margin of 10%.

Loan details

Amount: €500,000 to €1,500,000

Term: 4 years (01/07/2025 to 30/06/2029)

Interest rate: 8% annually, paid monthly (from 01/08/2025)

Subordination: Subordinated to bank land financing, but before intra-group or third party construction financing

Early repayment:

Within the first 3 years: subject to reinvestment fee of 6 months interest

After 3 years: free of charge

Late payment: fixed compensation of 10% + statutory interest on arrears

Security:

Total subordinated loans limited to the equity of the company

Independent valuation of land

Option right in case of default 6 months after maturity: purchase of shares at corrected equity -25%

Additional benefits for the investor

Right of purchase discount: Right to purchase apartments from the group at a 5% discount, in pre-sale or after completion

Limited cost structure within the land company: No overhead or hidden costs; only land and company related expenses allowed

Why invest?

Solid legal structure

Real guarantees through controlled capital accumulation

Monthly cash flow through interest payments

Potential for real estate discount

Location
Antwerpen
Real estate included
No
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Price Price on request

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