Quartiers secures financing for the development of villa project in Nueva Andalucia
The loan amounts to EUR 1.34 million, of which EUR 700,000 will be
used for construction of the villa, and the remaining EUR 640,000 may be
used by the Company for other projects.
The loan has a maturity
of two years and carries an annual interest rate of 7.46 percent. At a
net realizable value in excess of EUR 1.54 million, 50% of the profit is
distributed to the Lender. This means, for example, that the effective
interest rate at an expected net realizable value of EUR 1.8 million
amounts to 12.3%.
Quartiers Chairman Jörgen Cederholm is also
chairman of Strandängen Bostäder. Jörgen’s ownership in both companies
is below 10%. The Chairman waived his right to vote on the issue when
the board decided on financing.
The terms of the loan were the
most favorable Quartiers could secure for the Amapura project. Based on
the conditions of the project and the lending market in Spain, the terms
were deemed comparable or superior to the market average.