The goal of the investment is financing the costs of adaptation and renovation of a hotel object locate in Krynica Zdrój at ul. Czarny Potok 61-63. The effect of the conducted investment works will be a modernised 23 apartment holiday resort with a gastronomic area. The goal of the campaign will involve acquisition of financing in the amount of 500.000,00 PLN. The loan will be secured by a 1^st place registration of mortgage on the property in Krynica Zdrój at ul. Czarny Potok 61-63. The interest rate is set at 7% per year and the loan agreement is concluded for a period of 12 months. The interests are paid quarterly, starting 3 months after the campaign’s end. The total repayment of capital will be returned altogether, 12 months after the campaign’s end.

Financing in the form of a loan constitutes 11% of the value of the total budget. The remaining funds have been provided by the investor.

The source of repayment will derive from the sale of the apartments in the condo system. The price for each apartment will total 180.000 PLN. The size of each apartment will be between 20-25 sqm.

The investment will be realised by Mr. Czesław Sadkowski, the owner of Sadkowski & Partners Group. The investor possesses lengthy business experience and ensures the relevant financial security of the investment. Sadkowski & Partners Group has a broad range of commercial real estate in their portfolio, located in Warsaw, Częstochowa and Katowice. Their completion involved construction works, which provides a relevant mitigation of risk related to conducting of construction works involving renovation and modernisation of properties. Additionally, the relevant business relationships and cooperation with entities from the condo-hotel industry will allow to minimise the potential operational risks, related to sales of apartments in the condo system.

The securities will include the property mortgage set at 200% of the value of the loan.

Reservations:

The Borrower has acquired the right of perpetual usufruct of the property on the 3rd December 2019, on the same day an appropriate request has been submitted in the land and mortgage register conducted for the property. Immediately after its reviewing by the land and mortgage court, the new perpetual usufructuary: SADKOWSKI I WSPÓLNICY SPÓŁKA KOMANDYTOWA with its registered seat in Warsaw, shall be disclosed in the mortgage register conducted for the property. 

The investor reserves the possibility to resign from utilising the means from the loan in case any changes of the investment’s concept before the end of campaign.

Relevant risks:

Financing of Projects through Crowd Real Estate platform may involve: 

• risk of particular circumstances, the occurrence of which is independent from Crowd Real Estate Sp. z o.o. with its registered seat in Warsaw and which prevent the accomplishment of the Project – random events, actions of third parties influencing the Project (incl. disputing the administrative decisions acquired), risk of force majeure (incl. natural disasters or terrorist attacks and resulting losses);
• risks on the project owner’s side – risk of default on the loan agreement concluded with the Investors, incl. faulty or unpunctual settling of accounts or its lack, risk related to the possibility of deteriorating of the project owner’s economic situation, loss of liquidity or bankruptcy, opening of liquidation proceedings or business failure;
• risks related to changes in the rules of law related to the functioning of the Platform and the responsibilities of the lender and the borrower, including the tax law, counteracting money laundering, especially if there are changes in the rules of law regarding limitation of legal investment scope within the field of crowdfunding;
• operational risks – risks related to the possibility of accumulating losses due to inadequate or faulty internal processes, human errors, tele-informatic system errors (computer systems crashes) or in consequence of external events.