Loan portfolio overview (August 2020)

Loan portfolio overview August 2020

A strong team performance, coupled with healthy demand from both the borrower and investor side, resulted in record volumes in August. In total, we saw over €10,0 M worth of loans issued by the end of the month.

The recent trend of exceptional repayments also continued. Our first German project’s loans were repaid to our investors before maturity (€2,0M) and we recovered one of the largest defaulted loans in our history. Overall statistics were as follows: borrowers paid back 64 loans in the amount of €10,2M and the return rate of repaid loans was 11,3%. Furthermore, EstateGuru’s investors have now earned a total amount of €17,8M since 2014.

As mentioned above, we successfully recovered one of the largest loans in our defaulted portfolio during August. To be specific, the Miiduranna Villa development loan was repaid to our investors in full, with the principal amount of €0,9M. The loan had been in default status for over a year. The recovery process was the culmination of the work of several parties engaged in finding a solution including EstateGuru’s risk team, the borrower, other creditors of the project, and the buyer.

Besides the Miiduranna Villa development loan, two further recoveries were completed in Estonia (€0,2M) and we expect at least three defaulted loans to be repaid during September. In August, 7 loans worth €0,7M were put into default.

We will keep you informed about the quality of our credit portfolio on a monthly basis.