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Residential Real Estate Construction Company Seeking Loan in Riga, Latvia

Property-development entrepreneur leading the expansion of 208-home community project, with returns up-to EUR 4 million.
This Business is on a Premium Plan
Established 5-10 year(s)
Employees 5 - 10
Legal Entity Limited Liability Company (LLC)
Reported Sales USD 230 thousand
Run Rate Sales USD 274 thousand
EBITDA Margin 10 - 20 %
Industries Residential Real Estate Construction
Locations  Riga
Local Time 7:24 PM Europe / Riga
Listed By Business Owner / Director
Status Active
Overall Rating
Seeking Loan
USD 1.2 million for 15.0% annual interest, 1 year (Native Currency: EUR 1,050,000)
Reason: To date, we have sold 41 properties, including both completed homes and plots of land. Over the next... View More
Collateral Available: USD 1.14 million
Includes physical assets worth USD 1.2 million
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Business Overview
- Residential real estate construction business with an ongoing residential village project.
1. Total area:
- The residential village spans an impressive 40 hectares, offering ample space for long-term development and a vibrant community.
2. Houses built and planned:
- 30 homes have already been completed and sold, providing a solid foundation for the growing village.
- Remaining development potential: 230-330 homes, depending on the specific layouts and configurations of future projects.
3. Infrastructure:
- Central utility hubs for electricity, sewage, and water supply have already been constructed, ensuring immediate availability for the next 20 unbuilt homes.
- As additional roads and housing are developed within the village, the electricity lines will be extended in alignment with the project's needs.
- This phased infrastructure approach ensures cost-efficiency and readiness for rapid scaling.
4. Financials and profitability:
- Construction cost per house (excluding land): €115,000.
- Selling price per house: €190,000.
- Profit margin per house (after taxes): Approximately €15,000, equating to 14-15%.
- The business model demonstrates a strong return on investment and scalability with increased funding.
5. Scalability potential:
- The current pace of construction is limited by available resources, but with additional investment, the business can significantly scale operations, targeting the construction of 10-20 homes annually or more.
We take on the full responsibility for construction and sales processes, ensuring a streamlined and efficient project execution. This approach provides the investor with security while enabling the village to grow at a pace of 10-20 homes annually or more, depending on the investment scale.
The business holds land ownership certificates, adding significant value to its assets, and municipal approvals, and a registration certificate.
Products & Services Overview
Top-selling products and services:
- Our top-selling product is budget-class wooden frame and concreate panel houses, approximately 75m2-120m² in size, designed for families or individuals looking for affordable, high-quality housing. These homes are in high demand due to their energy efficiency, modern design, and competitive price point. Additionally, we offer row houses with multiple sections, catering to larger families or buyers seeking a slightly more spacious living arrangement.
Target customers and their needs:
- Our primary customers are young families, first-time homebuyers, and individuals looking to relocate closer to Riga, Latvia's capital, while maintaining a peaceful and natural environment. Buyers appreciate our homes for their affordability, functionality, and location within the growing Priežavotu residential community.
How the products/services are used:
- Our customers use these homes as their primary residences. They benefit from a carefully designed layout that optimizes space and energy efficiency, creating a comfortable and cost-effective living environment. The location in Priežavotu provides a strong sense of community, proximity to nature, and easy access to urban amenities.
Assets Overview
Tangible assets include the land, constructed buildings, and construction equipment.
To facilitate rapid development and scale operations, we offer a flexible investment model where buildable land plots can be transferred to the investor's name as collateral.
Facilities Overview
The residential village spans an impressive 40 hectares and is owned by us. The land is located in Priežavoti.
Capitalization Overview
Funding and Ownership Details.
1. Current funding structure:
The business has been self-funded to date, relying entirely on the promoter's personal capital and resources.
While this approach has enabled steady progress, it has limited the ability to scale operations rapidly.
As a result, we are actively seeking investors to accelerate the development of the Priežavotu residential village, with the goal of constructing 10-20 homes annually.
2. Debt/loans:
The business currently has no outstanding debts or loans. This clean financial position provides a solid foundation for future investments and partnerships.
3. Ownership structure:
The business is privately owned, with 100% ownership held by the promoter.
This structure ensures streamlined decision-making and a clear vision for the company's growth.
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Disclaimer: SMERGERS is a regulated marketplace for connecting business sell sides with investors, buyers, lenders and advisors. Neither SMERGERS represents nor guarantees that the information mentioned above is complete or correct.
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