CROSS-BORDER European peer-to-peer property lender EstateGuru has expanded into Portugal with its first project in the country now available for investment.
EstateGuru already has a presence in a number of European countries including Finland, Spain, and the Baltics. This latest expansion is part of the platform’s plan to become one of Europe’s leading alternative lenders.
“We want to become the leading ecosystem in the alternative lending market for small and medium-sized companies across Europe,” said Mihkel Roosme, head of business development at EstateGuru.
“Throughout the last five years, we’ve managed to provide excellent returns to our investors and have not faced any loss of investments.
“The quality of loans and compliance with know your customer and anti-money laundering regulations are essential for us, and therefore, we maintain a strong focus on these areas.”
EstateGuru’s first Portuguese project – a bridge loan – offers 12 per cent interest or 13 per cent for those investing over €10,000 (£9,212).
The loan is secured with a first rank mortgage with the loan repaid by refinancing, sale of the collateral property, or from the incoming business revenues of the company.
The project is a fully-approved large development site in the South of Portugal near the Algarve coast. The planning permission is for a country club-style resort with 154 units, a clubhouse, and multiple sports facilities.
Roosme also lauded Portugal’s recovery since the global economic crisis, and added that he believes the country’s real estate market offers some strong investment opportunities.
Portugal’s average gross domestic product growth has been two per cent year on year over the past two years and unemployment dropped to 6.3 per cent as of May.
However, Portuguese developers are still short on options for financing, EstateGuru said, and face restrictive regulations in the banking sector.