Record Month: Estateguru Micro-Investors Funded 8 Million Euro Worth of New Projects
Investors financed new projects worth 8 million euros on the Estateguru platform in September through loans secured by real estate, which is the largest monthly loan volume this year, and nearly a thousand new investors also joined the platform.
According to Estateguru CEO Mihkel Stamm, there were several reasons that contributed to the record loan volume in September. "Every investment comes with risk, and after taking a hit on a couple of resonant bond projects, investors are looking for new safe positions for their money. As they say, everything new is actually something old rediscovered, and real estate-backed loans are exactly that for many people," commented Stamm, noting that along with the current Euribor trend, the returns on many safer investment products have also declined. "Our portfolio has shown solid results over the past couple of years, and so real estate-backed loans offering around ten percent interest income are regaining popularity," added the Estateguru CEO.
September was also a record month for repayments, with investors receiving a total of 16.4 million euros. "For us it is very important to know that investors are directing a large portion of the repaid funds into new Estateguru projects," emphasized Stamm. Over a quarter of the total repayments came from the respected real estate developer Endover, which refinanced the loan taken for the Volta Villa project reconstruction with the help of a bank loan and repaid 4.2 million euros early to 6778 unique Estateguru investors, with loan investors in this project earning 10.8% interest income on an annual basis.
Of the new loans, over half, or 4.63 million euros, were issued in September to projects in Estonia, followed by Latvia with 1.68 million and Lithuania with 1.4 million euros. "The Estonian real estate market has been clearly more active in recent months, which in turn has brought both more new projects and investors to the platform," said Stamm, adding that 963 new investors joined Estateguru in September.
Estateguru is a leading pan-European investment environment that provides small and medium-sized enterprises with real estate-backed loans and carefully selected investment opportunities for our global community of investors. We are developing a digital borderless ecosystem for financing and investing in real estate projects across Europe and beyond. By bringing together different service providers, entrepreneurs, and investors in one operating environment, we can offer something unique that other financial institutions cannot – seamless, cross-border, and digital services for borrowers and investors. The Estateguru team comprises nearly 40 professionals in offices located in London, Tallinn, Riga, and Vilnius.
