Properties

The Erwin House

We are thrilled to announce that a new passive income investment opportunity, Erwin House, will be available for investment on 30th of March, 2020. We have hand-picked another great property for you to invest in and add to your real estate portfolio.

With Erwin House, we are keeping the consistency by following the similar features and characteristics as our previous properties. We are bringing the value of asset backed passive income investment to you. It is time to diversify your capital even more and continue building your ever growing real estate portfolio.


About the building

The Erwin House with its recognisable architecture comprises of renovated lofts in a century-old industrial building. In total, there are 33 studio or loft- style units built on two levels. The construction works were completed in the beginning of 2019.

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However, the building in which working has been highly valued for the past 100 years, the limestone walls saw life before the first Republic of Estonia already. The factory building was completed in parts, as part of the Luther Furniture Factory complex during the period of 1897 – 1919. The engineer – architect was Erwin Bernhardt Bernhard (1852 – 1914).


Location

Pärnu mnt 69, Tallinn, Estonia

The building is located in one of the most important hubs in Tallinn. Getting to city centre takes 3 minutes with public transport and 15 minutes by walking. In the immediate vicinity of the building are Bolt HQ, Transferwise, Swedbank Estonian HQ, Superministry, Tallinn University of Applied Sciences and A le Coq Arena.

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Property management

The Erwin House will be professionally managed by Goodson & Red. They take care of everything that relates to letting – from tenant sourcing, rent collection and to dealing with maintenance and minor repairs. Investors can devote more time to things that matter most.

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A glimpse of Goodson & Red activity:

  • 16 years of experience
  • >6% consistent returns
  • €10M assets under management

With almost two decades of experience in letting & management and confidence from hundreds of landlords, Goodson & Red is delivering peace of mind.


Investment case

Key detailsScreenshot 2020-03-10 at 19.50.07

  • Total investment amount: €171,000
  • Shares issued: 3,420
  • Share price at issuing: €50
  • Estimated net rental return: 6.35%*
  • Rental payments: Monthly
  • Investment horizon: 5 years
  • Option to exit earlier: Yes
  • Number of lofts: 2 (units 9 & 13)
  • Collateral: 1st rank mortgage

*Calculated at share price of €50

Structure and security

For the structure of this deal, BitOfProperty has set up a Special Purpose Vehicle (SPV), which is a private limited company. BitOfProperty will use the SPV to combine all investors under one investment vehicle and use the SPV to acquire the property. Investors become beneficial owners of the property via SPV according to their respective investment amount.

The investment is backed with the acquired property using a Security Agent, whose purpose is to hold the collateral (1st rank mortgage) for the benefit of the investors. The Security Agent is a company called LMP Security Agent OÜ and it is controlled by Law Firm LMP.

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Legal notice: BitOfProperty complies with all the laws and regulations in Estonia. BitOfProperty’s business model does not require an activity or operational license in Estonia. Any functionality of BitOfProperty platform does not trigger a need for any financial license. BitOfProperty does not take any responsibility of an investor who is from a country outside of Estonia. In case an investor is from a country that prohibits the use of BitOfProperty’s investment services, any activities taken by the investor on BitOfProperty’s platform are the sole responsibility of the investor. It is recommended for the investor to consult with a legal advisor prior to taking any actions on BitOfProperty’s platform.

 

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