Recent news about the P2P platforms in my portfolio

Recent news about the P2P platforms in my portfolio

News summary from my platforms and interesting articles during this week

Here is some of the news I have received from the 19 platforms I am currently invested with. For those of you who wants to keep updated, you can get the latest news in this summary. If I missed something important, please comment and I will add it to the list. 

Mintos: Mogo Finance plans to acquire Tigo and Kredo

September 22
Mogo Finance group, one of the largest European used car finance groups, has announced it is planning to acquire two lending companies – Kredo and Tigo. Both companies currently are part of Finitera group. The acquisitions are subject to regulatory approval. 
Finitera has been seeking a strategic investor since the beginning of 2020. Its management team came to the decision to sell both companies in order to ….

Dizozols Investments at Crowdestor - maybe just an extension

September 22
This is of course at this time just intentions, but time will tell if this project will be just an extension. Here is the information I received from Crowdestor

We would like to give you a status update that has been received from the Borrower SIA “Dizozols Investments”:

“Hereby I am sending an update on our operations.

We are very happy to inform you that the agreement of property sales has been signed.

At the moment such administrative procedures (the measurement of the last remaining properties, preparation of escrow accounts, transferring property rights in the land register, etc.) are left to finalize the deal. The price of assets was lower than we had budgeted at the beginning of the year, still satisfactory. We expect that the cashflow will begin by the end of November, therefore, we kindly ask you to be patient with interest payments until this moment. After that, the loans of ALL projects will be repaid BEFORE the initial repayment schedule.

Best wishes and stay safe,

RAIMONDS CIPE

SIA “Dizozols Investments”

Chairman of the Board”

Status on the Cambodia Crowdestor Projects

September 22
Looks like it could be defaults for three Crowdestor projects below. It sucks, but no one expected the tourism industry to take such a bit hit this year, when these projects was launched. Interesting final thought about property investing in Cambodia to take advantage of the crises. Below is the information in the email from Crowdestor

  1. Sweet Dreams Samloem Resort CRP-2115;
  2. Bounty Boutique Resort CRP-2344;
  3. Luxury Yacht Rental CRP-1837.

In 2019 CROWDESTOR launched crowdfunding campaigns for three tourism industry projects in South East Asia, Cambodia. The tourism industry in Cambodia has been growing on average 10% per year, for the past decade. The tourism industry during the last decade with every following year proved itself as a more and more lucrative investment sector.

As we explained before, Asia was the first region to be seriously affected by COVID-19 and was therefore one of the first to experience travel limitations and the consequences in the tourism industry. The lockdowns coincided with the first months of the year which is also the high season for tourism in the Southeast Asian region. As a result, since the beginning of this year, hotels experienced a significant drop in the number of clients served, the following months from March the majority of resorts experienced 100% cancellations and were closed.  The World Tourism Organization UNWTO has reported the losses of international tourism five times higher than in 2009 and a 93% decline in June 2020 comparing to the same period in 2019.

The situation hasn’t improved since June. Cambodia is very limited for tourists due to the high deposits each traveler has to pay to the government. Industry participants have the opinion that the situation might improve only by the end of the year 2021 when the next high season will begin. Our funded project is no exception. Resorts are fully closed since March and it is not possible to generate income. To maintain the assets and eliminate decay, salaries, materials, land lease is being covered.

Repayments for the above-mentioned projects have stopped and are not possible due to the disastrous effects of COVID-19.  This is a Force Major event, which the society has not experienced in modern times, so it took us some time to prepare a plan of action. CROWDESTOR is always on the side of the investors that is why we are looking for the best solution.

We see two scenarios on how to proceed and are inviting investors to take part in decision making:

Each investor who has invested in any of the projects will receive an invitation to vote for either Scenario 1, or Scenario 2. The voting will start next week and will be open until 15th October. We will inform you about this via a separate email. 1 EUR invested will equal to 1 vote.

Scenario 1: Project is being defaulted, CROWDESTOR takes over the assets and sell them at the highest possible current price, which is significantly below a fair market price in the “pre-COVID” period. Funds are distributed to investors.

Scenario 2: Extend the loan for a minimum of 12 months up to 18 months, with-out any payments, wait until the tourism industry revives after COVID-19, to sell the assets for a market price.

In case investors will face some losses in Scenario 1 or Scenario 2, part of these losses will be compensated by our Provision fund.

Regardless of the decision taken by our investors, CROWDESTOR will have an active role in reducing potential losses. Currently, it is possible to invest in tourism property with discounts of up to 75%, which is a price seriously under construction costs, as many resorts have to choose to loose assets completely or to receive 20-25% from the pre-COVID value. So we have decided the following – to launch a new project to acquire one or more assets in Cambodia at the lowest possible price, targeting the previously mentioned 75% discount, as we strongly believe in the growth opportunities when the tourism industry will revive.  The future gains from this project will be used to compensate for the loss to all investors if such will occur choosing Scenario 1 or 2. 

Crowdfunding has originated from the word “crowd”, so we are letting the “crowd” decide on the next actions. In a few days, you will receive a link and instructions to the voting procedure.

Thank you for your understanding and patience.

CROWDESTOR Team

Mintos & conflicts of interest, Part 2

September 22
Another good article from Kristaps. This is the second part about Mintos and conflicts of interest. Aigars is involved in so many of the loan originators on the Mintos marketplace. I wonder if this is a house of cards? 🤔

Swaper wins another award - Congratulations!

September 16
Swaper won the award “Best Loan Marketplace” for the second year in a row!  The annual report for 2019 was also released recently. I would very much like to see the results for 2020 so far as well,  but I guess we will have to wait a year for those numbers. 

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