Quartiers secures financing for development of villa project in Nueva Andalucía
Quartiers Properties AB (publ) (“Quartiers” or “the company”) has, through its Spanish subsidiary Flexshare España SL, entered into a financing agreement with Strandängen Bostäder i Bunkeflostrand AB (“the lender” or “Strandängen Bostäder”) with regard to financing the construction of Quartiers’ villa project in Marbella, also known as project Amapura. The loan amounts to EUR 1,340,000, of which EUR 700,000 is to be used for construction of the villa and the remaining EUR 640,000 is to 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 realisable value exceeding EUR 1,540,000, 50 percent of the profit will be distributed to the lender. This means, for example, that the effective rate of interest for an anticipated net realisable value of EUR 1,800,000 would be 12.3 percent.
Chairman of Quartiers, Jörgen Cederholm, is also chairman of Strandängen Bostäder. Jörgen’s ownership in both companies does not exceed 10 percent. The Chairman waived his right to vote on the issue when the Board made the financing decision.
The terms of the loan were the most advantageous Quartiers was able to agree in the case of Amapura. Based on the conditions of the project and the lending market in Spain, the terms are deemed to be comparable or superior to the average terms on the market.