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Bulkestate Analysis

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Last updated in December 2022.

What is Bulkestate?

Bulkestate OÜ, established in 2016, operates a real estate crowdfunding platform. Bulkestate is registered in Estonia, but mainly conducts business in Latvia. Bulkestate is regulated by general commercial legislation of Estonia and the European Union, and has a financial institution license in Estonia.

Bulkestate’s advertised weighted average annual return is 14.1%, and they have had 12,713 investors to date. Bulkestate has a total funding volume of €26.16m since launching in December 2016 (data sourced December 4th, 2022). Bulkestate statistics lists more valuable performance insights.

Key Takeaways

  • Bulkestate’s advertised weighted average annual return is 14.1% for investors.
  • Bulkestate only provides loans to corporate borrowers due to regulatory restrictions and their policy for project financing.
  • Bulkestate’s shareholders include Karlina Skalberga (Founder), Igors Puntuss (founder & CEO) and SIA LP Private Group.

Who is Behind Bulkestate?

Bulkestate’s founder & CEO Igors Puntuss holds a Masters Degree from Latvijas Universitate, and has had previous marketing and managerial experience. Their Real-Estate Analyst has 10-years experience at a large real estate and valuation company in the Baltic region. Bulkestate’s Head of Legal has 15-year work experience and helps ensure smooth dealings.

Bulkestate’s beneficial owners under direct ownership are listed as Karlina Skalberga (Founder) with a contribution of 1,250 € Ordinary ownership, as well as its founder & CEO Igors Puntuss also with a contribution of 1,250 € Ordinary ownership. The contact person for Bulkestate on its registry card, on the Estonian Business Register is listed as Grant Thornton Baltic OÜ, which is another Estonian registered PLC. Other Bulkestate shareholders include SIA LP Private Group having contributed 12 500 €.

Bulkestate’s financial statements for the year 2020 show assets of 1,075,411 € and 630,577 € in liabilities. They reported Net Profit (Loss) for Financial Year 2020 as 210,099 €, with “other operating expenses” of (- 231,841) €.

Bulkestate's Investment Product

Bulkestate’s investment products start at 50 €, and include real estate development projects and group-buying discounted deals. Investors can set up Auto Invest, which automatically makes investments according to investor-defined preferences. Bulkestate only provides loans to corporate borrowers due to regulatory restrictions and their project financing policy.

Real Estate Development Projects:

  • Financing is provided to build or renovate properties in order to sell them for a profit. The advertised average loan-to-value ratio (LTV) has been 53.7%, across 151 projects.
     

Group-Buying:

  • Investors can buy apartments in a building from discounted group buying deals by investing € / m2. A deal is closed only if apartments in a building have a buyer. The advertised discount has been 23%, across 96 sold units, totaling 14,018,590 €.

How Much Can You Earn?

Bulkestate advertises an average annual return of 14.1% to date, with a 13 months average loan duration for projects. Bulkestate invests in undervalued, distressed residential real estate for an average 12-18 month investment cycle, with a general policy of LTV less than 70%. Investors earn interest for a minimum 3 month term regardless of if the borrow makes an early repayment.

Bulkestate charges investors a 10% reservation fee and doesn’t allow investors to withdraw invested money before the scheduled repayment date.

Bulkestate charges borrowers an average commission fee of approximately 2-3% of the amount of the loan. If borrower loan repayment is delayed for up to 15 days, Bulkestate contacts the borrower and evaluates the situation with the support of the legal bureau "Fort". Bulkestate reserves the right to terminate loan contracts and requires immediate repayment in case of deliberate failure to comply with the terms of the agreement.

Other Considerations

Bulkestate has had a ruling issued on the Estonian Business Register “penalty payment caution: annual report not submitted” on the date 28.04.2022. However, since then the deficiencies have been rectified (10.06.2022).

Bulkestate’s annual financial statements are not yet posted for the year 2021 in the Estonian Business Register.

In case of bankruptcy, the liquidator or bankruptcy trustee manages all investors' assets separately from the assets and creditors of Bulkestate. Undisbursed investments are safe in an escrow account separate from the Bulkestate operational bank account.

Bulkestate may provide loans to the borrowers related to Bulkestate, its shareholders, beneficial owners or managers.