Crowdberry offers investors a chance to participate in loans to real estate developers for the first time

Following the successful investment campaigns for KLM, where investors became co-owners of various logistics and retail projects, Crowdberry is now, for the first time, offering the opportunity to lend private capital to real estate developers.

The first project to complement bank financing with private debt is Bottova Residence, a premium residential development in Banská Bystrica, Slovakia.

Private debt offerings will enable investors to participate in real estate financing through a fully transparent structure, with clearly defined terms and competitive interest rates, while the developer gains access to additional funding for the project.

The strong appeal of these crowdfunded loans is demonstrated by Crowdberry investors expressing interest exceeding €900,000 within just four days of the Bottova Residence campaign launch.

Investing in real estate made accessible

The residential project located in the heart of Banská Bystrica is currently at an advanced stage of development, with a valid permit and a planned completion in the summer of 2025.

Bottova Residence offers 27 modern and above-standard apartments and four studios in two neighboring buildings. Designed to the highest standards, Bottova Residence meets the demand for premium urban living in an attractive location.

This secured debt investment opportunity, structured as a loan, offers investors stable returns with an annual interest yield of 10.3% and a loan maturity of 6 to 18 months.

“The real estate market in Slovakia is experiencing a recovery, with property prices showing solid growth. In the Banská Bystrica region alone, real estate prices increased by 6.1 % in the last quarter of 2024. This growth is driven by a long-term shortage of high-quality apartments in the city. Combined with the prime location of the Bottova Residence project, this creates an opportunity for both an increase in the project’s value and further growth in apartment sale prices,” says Marek Baranyai, Credit Manager at Crowdberry.

The loan is intended to repay an existing bank loan, as the current financing bank is withdrawing from the project due to the internal policies of its foreign parent institution. A new bank will assume the loan, but under revised real estate financing regulations, the refinancing amount will be reduced by approximately 30%. As a result, the developer requires an additional €900,000 in capital, which will be raised through a loan from Crowdberry investors to ensure the project's successful completion.

Why invest in Bottova Residence

• Co-finance a premium residential development in the very center of Banská Bystrica alongside a bank, with priority repayment ahead of the owners.
• Fixed interest return of 8 % + 12M EURIBOR, resulting in an effective annual yield of 10.3 %, with a loan maturity of 6–18 months.
• Six months until completion - the project is in its final development phase, providing an opportunity to invest at an advanced stage.
• Upon repayment of the bank loan, the investment will be secured by the property (unsold apartments).
• Protective measures in place, including owner guarantees, in case of unsuccessful sales of 4-bedroom and 5-bedroom apartments.
• Loan-to-expected-revenue ratio is 75 %.

*Investing involves the risk of partial or total loss of the money invested. Your investment is not covered by the deposit protection scheme.