Real Estate Investment blog

Insider updates on Bauskas development project

Bauskas 57 - Insider updates
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In this blog article, You will find out the latest updates about the project. Also, see the pictures from the very heart of construction work. 

Update on the progress: 30.03.2021:

Starting from 29.03. Bauskas development project is in the refinancing stage. This means another successful exit is approaching Reinvest24 investors – as we are ahead of schedule and the project will be repaid before its maturity day. We would like to congratulate everyone that took part in this project, as it earned 13-14% p.a.

To explain the framework we are following and how things are working at Reinvest24, we decided to answer the most important questions you might have, based on a real-life example:

  • Why is the Bauskas development project getting refinanced?
    The main reason for that – a lower % rate for the Borrower.
  • Why did we simply not lower the interest rate for the Borrower?
    The Bauskas project was providing a 13%+1% (bonus) return for Reinvest24 investors. Currently, our average project return is 14.8-14.9%. We have plenty of other attractive opportunities to offer to our investors rather than decreasing the interest rate.
  • When will the repayments be done?
    As of today, the project has been paying monthly interests without any delays. We expect the principal repayment to happen during the coming weeks. Also, It depends on the speed of the Latvian Notary to make this transaction.
  • Important information to bear in mind
    On Reinvest24, the Bauskas project was providing investors with 13-14 % annual interest and current (actual) LTV of 52% instead of the stated maximum of 67%. The refinancing terms are a bit different, offering 11% p.a. with an estimated LTV of 75%.

Update on the progress 08.01.2021:

  • The roof works are prepared and waterproofing works are being prepared;
  • The staircase from the parking lot to the rooftop exit is completely ready;
  • Technical equipment of the elevator and the exit to the rooftop is completely ready;
  • The formwork has been delivered;
  • The blocks for masonry walls of the first floor has been imported and are ready to be used; 

Update on the progress 30.10.2020:

Embraced by the beauty of the fall season, our Bauskas development project becomes higher and higher. 

As of now, the frames of all 5 floors have been installed. The reinforcement binding of the floors and structural support columns are almost finished. Today the Bauskas street is full of concrete mixers, as our team of constructors is binding and concreting the final covering of the roof. After this step is done, we can say that the building frame is ready. 

Besides, the project manager Maksims Bedenko is stating that the sunset views from the 5th floor are simply breathtaking. 

Update on the progress 22.09.2020:

When it comes to the property building, the great management of it is the key to success. And in terms of Bauskas development property, we can proudly say that we are lucky to have partnered with this well-experienced developer. No additional words are needed on the progress, just look at the pictures below. During the past month, the team of constructors built the 2nd floor and started work on the 3rd floor of Bauskas residential complex. As of today, the project is 1,5 months ahead of the planned schedule which is considered as a great sign.

Video update on the progress 31.08.2020:

Updates on Bauskas project for 21.08.2020

Here are the updates of works that have been executed so far:

For the -1 level and underground parking:

  • Renewed the construction pit surface with concrete layer 60 cbm of concrete;
  • Constructed the rain sewer and elevator shafts, using 5 cbm of concrete;
  • Prepared for concrete slab – reinforcement mesh binding;
  • Concreted the concrete slab, using total 358.50 cbm of concrete;
  • Bound the column mesh and concreted column, using 59 cbm of concrete;
  • Bound the basement/parking wall mesh and concreted, using 59 cbm of concrete;
  • Formworks for ground-level ledges, meshed and concreted, using 7 cbm of concrete;
  • Ledged walls, meshed and concreted it, using 6 cbm of concrete;
  • Overlapped the slab of the basement/parking, meshed and concreted, using, 133.5 cbm of concrete;
  • Started the construction works for the 1st-floor columns – mesh, concreting.

As of 21th of August, the full basement and underground parking is ready and wide form-works returned to the supplier already.

Updates on Bauskas project for 03.08.2020

The city of Riga has approved all the permits and the construction works has began. 
During the last couple of weeks, the construction team performed the following works:

  • Renewed construction pit;
  • Made an entrance for underground parking;
  • Leveled the basis of construction pit and poured 400 m3 of concrete for a basis;
  • Polished the basis and started to create foundation for the walls;
  • Created elevator and drain shafts;

Here you can see the 3D visualisation of Bauskas 57 project.

Please, see below the pictures from the construction fields:

Key facts about the project:

  1. The apartment building in a green district and close proximity to shops and transportation lines; 
  2. LTV – 67%
  3. Collateral – 1st rank mortgage;
  4. Duration – 12 months;
  5. Payment frequency – Monthly interest payments 
  6. Provided by an experienced international developer, who has finished more than 10 residential complexes and 2583 apartments;

Read the full project description here.

What is going on in Latvia?

According to an economist with Citadele Bank, Latvia successfully overcame the first wave of COVID-19 more successfully than other European Union (EU) countries. The country itself is in a strong position according to many economic indicators. The Economist states that despite the initial good news, there are doubts regarding the uncertain future of the virus spread. However, there is hope that thanks to previous experience and Latvia’s strong position compared with other countries, a second flare-up may be easier to overcome.

The money is coming

On 21 July, in Brussels, at the conclusion of one of history’s longest summits of leaders of the EU member countries, an agreement was reached both on the next multiannual EU budget and the European Economic Recovery Fund. As a result, the EU will provide more than 10 billion euros for the development of the Republic of Latvia. According to Latvian Prime Minister Krišjānis Kariņš, the available European funding will bring the greatest added value to Latvia. If it will be invested wisely, of course. The government will implement improvements in various areas such as education, health care, the taxation system and others. Also, the agreement provides funding for the implementation of the Rail Baltica project. It is a greenfield rail transport infrastructure project which will connect 5 EU countries – Poland, Lithuania, Latvia, Estonia and Finland.

Over the next seven years, almost 10.5 billion euros will be available for the development of the Latvian economy. Compared to the current EU multi-annual budget for the period from 2014 to 2020, it will make a 39% increase.

How is Real Estate market feeling?

In regards to the real estate market, the updates are following. The Baltic Course reports that, compared to May 2019, the number of real estate transactions in Riga decreased by 43% this May. In general, investors who invested in Baltics real estate are benefiting, as average prices continue to rise. Currently, the total number of real estate transactions in the Baltic capitals is growing. And current forecasts suggest that higher activity can be expected in August and September.

Considering investment options in Baltics Real Estate? Take a look at our 4 currently available properties

Also, soon are expected the amendments to the National Real Estate Cadaster Law and the Law on Immovable Property Tax, which provide for the abolition of the tax for primary homes worth up to EUR 100,000. The Justice Minister Janis Bordans reports that this would mean, for instance, property tax on a primary home with a cadastral value of EUR 80,000 would be zero euros, but for a home with a cadastral value of EUR 120,000, the property tax would be calculated from EUR 20,000.