A real estate bond sale in Slovenia worth €9.5 million was announced by Slovak property developer Corwin and Czech investment company Hartenberg operating in CEE.
Corwin has announced a new investment product which wasn’t present in the retail sector of the Slovene market in 20 years. The bonds are secured by the lucrative land plot designated for their new Ljubljana venture, Linhartov Kvart. With a minimum investment threshold of €10,000, they offer 6% interest payable once a year with a five-year maturity. Notably, these bonds are also secured by a conservative leverage of 50% LTV (loan-to-value ratio). According to Corwin, Linhartov Kvart bonds are thoughtfully structured, ensuring that all bondholders receive returns even before the inception of bank financing. “We would like to allow retailing investors to be a part of an innovative project that will revitalize a degraded area near Ljubljana’s centre and bring a new approach that will contribute to the quality of life in Slovenia’s capital,” explained Robert Mitterpach, CFO of Corwin.
The issuance of bonds is organized in cooperation with Ilirika, a Slovene brokerage company. While the Linhartov Kvart project is currently in its initial phase, the proceeds from this bond issuance will be strategically allocated to prepare key spatial documents, finance preparatory work and Corwin's other projects. Notably, the construction of Linhartov Kvart will be supported by a combination of bank financing, money raised from the bonds and own equity. “This gives us greater flexibility and time to make this project as exceptional as possible. As an added benefit, it allows local investors to cooperate in the development of their city,” concluded Mitterpach.
In collaboration with the Austrian architectural studio, AllesWirdGut, and the Danish urbanists from Gehl Architects, Linhartov Kvart is set to transform an underutilized and degraded land plot of nearly 16,500 sqm. Located south of Linhartova Cesta, just behind the Slovenijales office building, this visionary project is set to become one of Ljubljana’s icons. “Our idea is to create a compact city block on a human scale and help uplift and improve this unique location,” declared Mitterpach. Guided by Corwin's core principles, this project promises to embody the essence of creating progressive, people-centred developments within the framework of modern and vibrant cities.
