64 Different Country Investors Invested a Million in Kohila Residential Complex
More than 4,000 investors from 64 countries invested in the Kohila real estate development. Thanks to their investments, a new residential complex was built next to the manor park in an Estonian small town. This is a good example of how, with the support of a digital funding platform, money from residents of Malaysia and Argentina, for instance, can reach an Estonian small town and be used to build new homes and make the local living environment more attractive and modern.
According to Laur Laanmets, CEO of Ruudus Ehitus, which led the development, building in smaller locations is often easier than in larger cities, for example. "The community is unified and people know each other, which makes communication and business dealings smoother. In the case of Kohila, it is also a comprehensive living environment: everything necessary is present, from kindergartens and schools to a health center and sports facilities. In addition, Kohila has a major advantage in its proximity to Tallinn," lists Laanmets.
Regarding the financing of the development, the CEO of Ruudus Ehitus made his choice based on who offered his project the best terms and the fastest financing. He sees raising money from thousands of investors through a digital funding platform only in a positive light. "The process went smoothly. I raised money in stages and everything proceeded as planned. This fit perfectly with my development project's timeline and needs," added Laanmets.
According to Daniil Aal, head of business operations at Estateguru, this development is an excellent example of how financing for small projects can work globally. "It would be quite unthinkable for a private investor from Malaysia or Argentina to establish direct contact with a developer in Kohila and invest their money there in smaller or larger amounts. With the help of a funding platform, such cooperation becomes a reality," explains Aal. According to him, the benefits are multifaceted, as the developer gets quick access to the financial resources needed for construction, and investors earn decent returns by lending money secured by real estate. "For example, over the last two and a half years, we have facilitated loans worth more than 200 million euros," he adds. Thus, in a situation where difficulties are discussed regarding attracting foreign capital to Estonia, funding platforms continue to fulfill this task successfully.
In this specific case, more than one million euros was invested in Kohila, which was used to build nine new homes. The investors' money earns 11% annual interest in this project.
Estateguru is Europe's leading real estate loan platform, offering real estate-secured loans to small and medium-sized companies and attractive returns to thousands of investors in financing such loans.
By bringing together developers and investors, projects that make our living environment more modern, energy-efficient, and attractive become a reality.
Estateguru has helped realize over 7,000 real estate projects, financing them with a total of more than 870 million euros. The platform has been joined by over 163,000 investors from more than 100 countries, and the average historical return for investors has been 10.16%.
Estateguru holds a European crowdfunding service license.
