Introductory summary
Product description
The product described in this Investment Analysis is a participation in a senior loan provided for the purpose of refinancing a bridge loan from Upvest, which was drawn in 2021 for the purpose of purchasing and consolidating land in Jindřichův Hradec, and for the purpose of financing the construction and overhead costs of the implementation of the Rezoning Project for a future shopping centre ("OC") consisting of several retail units.
The purpose of the senior loan is to refinance the Upvest senior bridge loan up to an amount of up to EUR 154.5 million. (i.e. the amount of the Upvest bridge loan as of the date of the expected first drawdown) ("Tranche A"), financing construction costs under the works contracts for the implementation of the Rezoning Project up to CZK 71.4 million. CZK 71.4 million ("Tranche B"), and financing of soft costs of the Project up to CZK 20.4 million. The contracted amount of future revenues (based on future purchase contracts) is always equal to or higher than the debt to Upvest including the assumed interest. Interest with principal is payable in one lump sum or in stages no later than the final maturity date of the loan, i.e. 30 June 2024. Repayment of the Senior Loan will be made from the proceeds of the sales of the OC plots. The loan is expected to be repaid from these contracted proceeds during Q2 2023 (expected maturity).
The Senior Loan will be secured by a lien on the commercial interests of the Borrower, a lien on all project land, a lien on the project account, a notarial deed of direct execution and acknowledgement of debt, and repayment of the Senior Loan will be senior to the repayment of all other debts of the Borrower.
The developer of the project is DE LINEA s.r.o., which is backed by the development group CA Czech Austria Invest a.s. Representatives of the CA Czech Austria Invest group have almost 20 years of experience in the development of mainly commercial real estate (primarily local retail properties) and residential real estate, mainly in South Bohemia.
The developer is obliged to maintain the value of the indicator below 75%. The developer is also obliged to sell the OC plots at minimum sales prices, which in total amount to CZK 357.6 million. It undertakes to maintain the maximum total project costs of CZK 260.7 million excluding VAT. CZK, excluding financial costs.
Investment product description
| Product | (participation in the gains and losses of a loan agreement) |
| Purpose of the loan | Refinancing of the Upvest bridge loan and financing of construction and overhead costs |
| Location of the financed project | Křižovatka Václavské ulice s obchvatem města směrem na Třeboň, Jindřichův Hradec |
| Parties to the loan | Lender: upvest s.r.o.; Borrower: DE LINEA s.r.o.; Intervener: Grelio Commerce s.r.o. |
| Investment objective | až do 246 300 000 Kč |
| of which Tranche A | až do 154 500 000 Kč (jednorázově) |
| of which Tranche B | až do 71 400 000 Kč (postupně) |
| of which Tranche C | až do 20 400 000 Kč (postupně) |
| Minimum investment amount | 5 000 Kč |
| Type of interest | Simple |
| Expected repayment method | Interest payable in one lump sum or in arrears with the principal from sales of lots to retailers, no later than the final maturity date |
| Fundraising period | 12.06.2022 - do 31.01.2023 |
| Estimated start of interest | After successful fundraising, but not before 1.8.2022 |
| Loan maturity from Upvest | |
| Nearest due date | n/a |
| Estimated maturity | 9-12 months (Q2 2023) |
| Final due date | 24 months (30.06.2024) |
| Securing a loan | Lien on project account Lien on subordinated receivables Notarial deed for direct enforceability of the claim and acknowledgement of debt |
| Developer | CA Czech Austria Invest a.s. |
| Project company | DE LINEA s.r.o. |
Participation parameters
Developer may repay the loan from Upvest no later than the final maturity date, in one lump sum or in instalments. The Investor shall share in the proceeds from the date of successful fundraising, but always not earlier than 1 August 2022, until the loan is repaid in full. The actual interest on the drawn down portion of the principal begins on the day after the loan is drawn down by the developer. The proceeds are paid to the investors after a given loan or interest payment by the developer, the proceeds corresponding to the reservation fee (i.e. reservation of funds until the conditions of drawdown are met by the borrower) will be paid to the investors together with the first interest payment.
% p.a.
Total interest on the loan
% p.a.
Upvest fee
% p.a.
Net income
>= 0 CZK
8.25% p.a.
>= 100,000 CZK
8.5% p.a.
>= 1,000,000 CZK
9% p.a.
Interest income will be paid in one lump sum or in stages together with the principal no later than the final maturity date.