Introductory summary
We offer you participation in for Phases 1 and 2 of the Prague residential project U Sluncové. The mezzanine loan is provided for the purpose of refinancing part of the developer's own resources already spent in the project. Both phases are being implemented simultaneously, each phase includes one apartment building of two blocks. A total of 107 residential units, 105 garage parking spaces and 82 basements will be constructed in the project. The project is at an advanced stage of construction implementation (25% of the project's construction costs have already been spent) and has pre-sales at 98.3% of the minimum required yields, where 82% of sales at the minimum required yields are sufficient to repay the Upvest loan. The project has a valid building permit and construction works are ongoing (commenced in November 2020).
The loan is secured by a notarial deed of direct execution and acknowledgement of debt and a surety declaration by the parent company FINEP HOLDING, SE. Interest is capitalized during the credit relationship and is payable together with the principal no later than the final maturity date. The principal may be repaid in one lump sum or on an interim basis no later than the final maturity date. The loan has an expected maturity of approximately 22 months and can be repaid no later than 31.01.2025. Repayment of the loan takes place upon completion of the sales of the project units and upon repayment of the bank loan. Under the loan agreement, the developer is obliged, among other things, to comply with the maximum debt-to-value ratio () and the maximum debt-to-cost ratio of the project (). This maximum limit was set at 85% for LTV and 100% for LTC (taking into account the pre-sales of the project).
Legal due diligence did not identify any facts that would jeopardise the granting of the loan. Emphasis was placed on assessing the contractual relationships of the project company, the validity of the public permits for the construction, the contract for the construction of the apartment buildings and other potential legal risks.
Technical screening also did not identify any facts that would jeopardise the granting of the loan. The main focus of this review was to check the valid construction permits, the construction contract, the evaluation of the construction cost according to the construction contract, the project schedule, the current status of the project construction and other potential technical risks.
The conclusions of the the sensitivity analysis shows that even with a drop in sales prices of up to 18.5% below the minimum yield under the loan agreement (which is determined to be approximately 11% below the estimated yield under the loan) and with no change in other assumptions, Upvest can be expected to repay the loan, including the facilities. The conclusions of the sensitivity analysis further indicate that a potential increase in construction costs of more than 15% over the maximum construction costs still provides a sufficient profitability level for the project at the 1,13x. Sufficient profitability of the project at the level of 1,16x remains even if the overall schedule is extended by more than 30 months compared to the current assumption.
Among main risks of this investment opportunity are mainly the construction risk in relation to the general contractor, who may not meet its obligations under the construction contract despite possible penalties, the possible extension of the project implementation schedule and the related possible termination of the already concluded future purchase agreements, which may be terminated without penalty if the project is not approved by 30 June 2012.However, we are trying to mitigate the aforementioned risks by, inter alia, the obligation to carry out the project approval by 30.03.2023 or by requesting the developer to supplement its own resources in case of an increase in the project's investment costs. The surety statement should then increase the validity of the agreed obligations. However, this is not an exhaustive list of project risks, of which there are many more. Reporting to investors will be on a quarterly basis.
Popis produktu
Participace na za účelem financování developerského projektu Byty U Sluncové v Praze.
Developerem projektu je společnost FINEP, která v rámci České republiky a Slovenska postavila více než 13 500 bytů v desítkách úspěšně dokončených projektů. Společnost FINEP se věnuje rezidenčnímu i administrativnímu developmentu již více než 25 let. Úvěrovanou společností je dceřiná společnost FINEPu, určená výhradně pro realizaci projektu U Sluncové, a to společnost Nová Invalidovna a.s.
Developer využije mezaninový úvěr od Upvest pro účely refinancování části vlastních zdrojů vynaložených v rámci projektu. Úvěr je poskytován po dobu stavební realizace projektu.
Úvěr Upvest bude zajištěn ručitelským prohlášením mateřské společnosti úvěrovaného FINEP HOLDING, SE a notářským zápisem k přímé vykonatelnosti a uznání dluhu. Úroky budou po dobu úvěrového vztahu kapitalizovány a splaceny společně s jistinou. Jistina bude splacena jednorázově nebo postupně z výnosů projektu nebo refinancováním bankovním úvěrem, nejpozději však k datu konečné splatnosti.
Popis investičního produktu
| Product | (participation in and losses from ) |
| Refinancing of part of the borrower's own resources invested in the project and repayment of the loan to the sole shareholder | |
| Location of the financed project | U Sluncové street, Prague 8 - Karlín |
Lender Nová Invalidovna a.s. | |
| Investment objective | 55 800 000 CZK |
| Total | 558 000 000 CZK without VAT |
| of which financed | 338 667 392 CZK |
| of which financed from the developer's own resources and client advances received | 163 532 608 CZK |
| of which financed from Upvest | 55 800 000 CZK |
| Minimum investment amount | 5 000 CZK |
| Maximum investment amount | 5 000 000 CZK |
| Type of interest | |
| Interest capitalised and repayable together with the principal, principal repaid in one lump sum or on an interim basis no later than the final maturity date from project proceeds or by refinancing with a bank loan | |
| 22.11.2021 - 17.12.2021 | |
| Estimated start of interest | After |
| Loan maturity from upvest | |
| 12 months after the loan is drawn (approx. 17.12.2022) | |
| 21 months (31.08.2023) | |
| 38 months (31.01.2025) | |
| Securing a loan | Surety statement of FINEP HOLDING, SE |
| Project company | Nová Invalidovna a.s. |
Parametry participace
Developer může splatit úvěr od Upvest nejpozději v den konečné splatnosti, a to jednorázově, anebo po částech. Investor se podílí na výnosech ode dne úspěšného fundraisingu až po úplné splacení úvěru. Samotné úročení na načerpané části jistiny začíná dnem čerpání úvěru developerem a končí dnem obdržením splátky dané jistiny úvěrujícím. Výnosy budou investorům vyplaceny bezodkladně po obdržení příslušné splátky úvěrujícím.
Developer může splatit úvěr od Upvest i před datem nejbližší splatnosti, za takové situace je výnos investorů chráněn pomocí poplatků pro developera, které jsou nastaveny v takové výši, aby dorovnaly nominální výnos, který by investor obdržel, pokud by byl úvěr splacen v den nejbližší splatnosti.
Časová prodleva mezi předpokládanou splatností a dnem konečné splatnosti umožňuje úvěrovanému splatit úvěr v momentu dosažení dostatečných prodejů po dokončení stavební realizace pro úplné splacení seniorního úvěru a následně úvěru Upvest. Zároveň poskytuje dodatečnou rezervu pro případná prodlení v rámci stavební realizace či jiných komplikací.
% p.a.
Fee for the provision of payment services
% p.a.
Net income
Společně se splátkou jistiny po splacení úvěru.
