Real Estate Company Numai Issues Bonds Worth Two Million Euros
A year after entering the Estonian market, Lithuanian company Numai, which provides a "rent to own" real estate acquisition service, is entering the capital market and issuing bonds worth two million euros. Previously, the company has already raised three million euros through a private offering, and now it is moving to a public offering round. The funds raised through the offering will be invested in the company's development in the residential real estate markets of Vilnius, Kaunas, and Tallinn. Estonian investors can also invest in the bonds.
In September, Numai will conduct a public offering of bonds, during which it plans to raise two million euros with the help of partners. Half a million euros will be raised through the crowdfunding platform Rontgen, through which international investors, including Estonian residents, can purchase bonds. Half of the bonds available through Rontgen have already been realized.
The annual interest rate on the bonds is six percent, but in the public offering the bonds are sold to investors at a discount, and their total return reaches approximately 7.5%. The bonds will be redeemed on December 3rd of next year.
The company "Mano numai," which manages the Numai brand, started operations three years ago, and during that time has raised capital of seven million euros from private investors and an additional 14 million euros from banks. This year, "Numai" has issued bonds worth three million euros through a private offering, with a face value of 1,000 euros.
According to Numai's calculations, the company's existing real estate portfolio has appreciated on average by 20%, and the company's operations are not directly affected by a possible correction in residential real estate prices.
"We want to attract new investments to implement our further development plans. We are allocating these funds for the purchase of rental apartments in Vilnius, Kaunas, and Tallinn," commented Numai's head and founder Aurimas Čiagus.
The legal advisor for the bond offering is the law firm Fort Legal and the financial advisor is Aalto Capital.
Numai is a Lithuanian company that introduced to the Lithuanian and Estonian markets an innovative real estate purchase service "rent to own," which allows people to initially rent a property of their choice and then purchase it. Numai purchases the real estate suitable for the client, the client can move into the new home immediately and furnish it according to their taste, initially paying rent to Numai and saving money to purchase the home or as a down payment for a bank loan. Before the purchase, the rental period lasts two to five years. The value of real estate in Numai's portfolio amounts to 27 million euros.
