Project - 11-1011101

Funding request €245341.00
Loan term: up to 24 months
Total interest rate*
12%
- Published for investment €0.00
- Already funded €43444.09

Loan details

Loan Type:	Business loan (Bridge loan)
Country:	Spain
Interest rate:	12% p.a.
Loan Term:	24* months (more information in Project details section)

Collateral

Collateral:	Claim rights. The Borrower is secured by the 1st rank mortgage on the real estate
Collateral value:	€ 569 974 (more information in Description of the collateral section)
Loan to value:	43%

Borrower details

Borrower Type:	Legal Entity
Company Name:	GINAMSUN TRADE, S.L. Unipersonal (100% shareholder AS “VIA SMS Group”, JSC (Latvia))
Country:	Barcelona, Spain
Industry:	investments in nonperforming loans (NPL)
Considering the growing interest from investors in financing promising projects, alternative finance company VIA SMS Group is looking to expand its business scope entering the bridge lending segment by financing mortgage-backed nonperforming real estate loans in Spain. The business loan will be issued to the GINAMSUN TRADE, S.L. Unipersonal, with Spanish tax identification number C.I.F B-67551242, based in Barcelona, Pau Claris 162, 4º, 1ª, registered in the Registrar of Companies of Barcelona, which aims to acquire nonperforming mortgage loans in Spain where liabilities are planned to be covered by realizing the pledge.
The venture will be carried out in cooperation with ATLAN ADVANCE MANAGEMENT SL (ATLAN) which is licensed as a real estate credit intermediary by the Bank of Spain. All activities of ATLAN are supervised and controlled by the Bank of Spain. ATLAN is also a member of AIF (Association of Investment Advisory Professionals). ATLAN provides the Borrower an access to credit and real estate assets in Spain through the tailored solutions, including credit portfolio administration, legal services, collateral administration, and transaction management.
VIA SMS Group is a well-known alternative financial services provider operating across Europe and Asia-Pacific. Since the company launched in 2009, VIA SMS Group has expanded its product portfolio and geography of operations acquiring a significant share of European consumer lending market. As consumer lending remains the core business of VIA SMS Group, the company has successfully other fields of alternative finance by developing such brands as digital payments platform VIALET (holding an electronic money institution license No. 16 issued by the Lithuanian Central Bank), investment platform VIAINVEST (in the process of acquiring the investment brokerage firm license in Latvia), payment card SAVA.card and others.

Project details

Loan type:	business loan
Loan purpose:	secured nonperforming real estate loans purchase (more information find in Description of the collateral section)
Loan initial term:	24 months. Giving the nature of the deal, early repayment of the loan is possible as well as reasonable prolongation occurs
Interest rate:	12% p.a. (minimum 6 months interest retainer is applicable for early redemption)
Loan amortization:	interest and principal at the end of the loan term
The Borrower is going to acquire nonperforming mortgage loan (NPL) in Spain where liabilities are planned to be covered by realizing the pledge.
ATLAN will ensure transaction management as well as technological partner Idealista – the largest real estate website in Southern Europe – which will ensure in-depth market analysis for real estate realization related decision making.
Investments in NPL are the purchase of loans where the borrowers have stopped paying the installments on the principal and interest from a bank or fund under an assignment agreement. Strengths: loans are acquired at a discount only secured loans, backed by real estate properties the value of the pledged property is determined by an independent appraisal company only major cities in Spain and their surroundings.

Description of the collateral

Investing in non-performing loans explained

International Monetary Fund states that the issued loan is considered nonperforming if debtors have not paid interest and/or principal payments in at least 90 days or more; interest payments equal to 90 days or more have been capitalized, refinanced, or delayed by agreement or payments have been delayed by less than 90 days, but come with high uncertainty or no certainty the debtor will make payments in the future.
Banks usually sell nonperforming loans (NPLs) to other investors to rid themselves of risky assets. Banks in some countries (Spain is the most notable example here) have been relatively successful in managing down their NPLs. This has generally relied on intensive workouts by these banks, access to external specialized NPL servicers, a mature and reasonably active NPL market into which banks can sell or securitize their NPLs, a reasonably well-developed ability for investors to value and to realize collateral and national asset management companies willing and able to purchase large amounts of NPLs or whole portfolios of an asset class.

Investments in NPL are the purchase of loans where the borrowers have stopped paying the installments on the principal and interest from a bank or fund under an assignment agreement. Strengths:

loans are acquired at a discount
only secured loans, backed by real estate properties
the value of the pledged property is determined by an independent appraisal company
only major cities in Spain and their surroundings.

The Borrower treats all NPL deals in cooperation with ATLAN

Project timeline

Project starts
28.06.2021
Lawsuit filed
-
Court considered
the lawsuit
-
Judgement passed
-
Auction
-
Collateral possessed
-
Collateral sold
-
Loan and interests paid
-

This particular business loan allows early exit from the investment taking into account specific annual interest rate calculation terms. Early exit options and respective annual interest rates are listed below. Early exit from the investment can be requested by pressing EARLY EXIT button available in this particular business loan profile. Invested principal and earned interest returns to investor account after selected notice period.

Reason for withdrawal from the agreement	Prior notice period	Guaranteed annual interest rate (paid on monthly basis)	Extra annual interest, paid once at the end of the agreement	Total annual interest rate
The loan maturity day	n/a	12%	2%	14%
Early exit request before the maturity day	1 month	12%	n/a	12%
Early exit request before the maturity day	3 month	12%	1%	13%
Early exit request before the maturity day	6 month	12%	2%	14%

By selecting one of the early exit options listed below, you will automatically inform VIAINVEST about your willingness to exit the investment after the selected period of time starting from the date when the request is made. Invested principal and respective earned interest will be transferred to your investor account after chosen time period.

Reason for withdrawal from the agreement	Prior notice period	Guaranteed annual interest rate (paid on monthly basis)	Extra annual interest, paid once at the end of the agreement	Total annual interest rate
The loan maturity day	n/a	11%	2%	13%
Early exit request before the maturity day	1 month	11%	n/a	11%
Early exit request before the maturity day	3 month	11%	1%	12%
Early exit request before the maturity day	6 month	11%	2%	13%

Reason for withdrawal from the agreement	Prior notice period	Guaranteed annual interest rate (paid on monthly basis)	Extra annual interest, paid once at the end of the agreement	Total annual interest rate
The loan maturity day	n/a	9%	2%	11%
Early exit request before the maturity day	1 month	9%	n/a	9%
Early exit request before the maturity day	3 month	9%	1%	10%
Early exit request before the maturity day	6 month	9%	2%	11%

*Two component compensation model: interest of 8% p.a. on monthly basis plus interest paid at maturity of the agreement, providing investor with yield to maturity range from 8% to 12% p.a. Interest paid at maturity derives from project Capitalization Rate and Real Estate sales price as follows:

Calculation example:

Capitalization Rate	Sales price	Yield to maturity
5,75%	< 38 093 071 €	8%
5,25%	38 093 071 € - 41 720 983 €	10%
4,75%	46 112 665 € <	12%

Capitalization rate indicates the expected rate of return an investor is likely to achieve on an investment property. The rate is calculated by dividing net annual operating income by the value of the property and multiplied by 100 to get the percentage.

Collateral	VIAINVEST'S loan is backed by Borrower’s claim rights to its ultimate debtor. Borrower’s claim rights to its ultimate debtor is backed by 1st rank mortgage on real estate
Real estate type	Residential apartment
Province	Barcelona
Address	Carrer de Benet Mateu, 62, Barcelona
Valuation area	120 sq.m.
Appraiser Estimated	05.02.2021
Estimated market value	EUR 569 974 (4 750 EUR/sq.m.) by Idealista
Loan to value (LTV)	43%
Description	The apartment located in one of the favorite residential areas of the Barcelona metro area (Sarria). Zone typology: A+/A+