Blog

Owner's Announcement: Devon's next chapter

The past weeks in the European P2P industry have been intense for everyone. As the owner of MJL Group, I want to personally address our community and provide full clarity on where MJL Group is heading, how we are reinforcing Devon’s long‑term stability, and why our strategic direction remains strong, disciplined, and fully aligned with investor protection (not only German investors).

Our commitment is simple: Devon will continue operating with resilience, transparency, and regulatory strength - backed by the robust MJL Enterprises business that stands behind it.

Regulatory Framework: AIFP License & Investment Prospectus

Devon is progressing through a decisive regulatory transformation. We are advancing toward the Alternative Investment Fund (AIFP) regime, accompanied by the preparation of a full Investment Prospectus for review by the Estonian Financial Supervision Authority.

This upgrade will introduce:

• stronger governance standards
• enhanced disclosures
• unified EU‑level investor protection
• a regulatory backbone suitable for long‑term institutional capital

The AIFP license and Prospectus obligations will form the core of Devon’s future operating model, ensuring that our platform evolves into a fully compliant, transparent, and professionally governed investment environment.

To ensure retail investors can participate under the AIFP structure, Devon will introduce a dedicated feeder vehicle, which will pool investor capital and invest into the main fund on their behalf, enabling full compliance while preserving accessibility.

New Loan Agreements: 96% Community Acceptance

Our updated Loan Agreement structure - designed to meet regulatory expectations and strengthen investor protection - has now been accepted by 96% of the Devon community.

This overwhelming support confirms that our long‑term strategy is aligned with lender expectations.

To ensure full compliance, the updated structure is undergoing an independent legal review, including a formal legal opinion requested from KPMG Germany, covering both German and EU financial regulation.

Next‑Generation Platform Migration

Devon is preparing to migrate to a new, next‑generation software provider that will serve as the technological foundation for the AIFP regime and Prospectus‑based operations.

The upgraded platform will deliver:

• automated regulatory reporting
• integrated investor suitability & risk profiling
• enhanced transaction monitoring & fund segregation
• transparent dashboards for lenders and regulators
• scalable architecture for future investment products

This migration is a major step toward a modern, resilient, and fully compliant investment infrastructure.

Backup Liquidity Plan: MJL Group Bond Issuance

To ensure resilience in the event of unforeseen regulatory instructions - including accelerated repayment requirements - MJL Group is preparing a strategic bond issuance.

The purpose of this issuance is to:

• provide additional liquidity to the group
• serve as a safety buffer for unexpected regulatory events
• strengthen our ability to respond quickly to repayment obligations
• reinforce confidence in Devon’s long‑term stability

This measure ensures that Devon remains prepared for any scenario where regulators may require partial or accelerated repayment.

MJL Group: Strong Asset Base & Continued Growth

MJL Group has operated since 1993, building a strong reputation in construction and real estate development. Today, our portfolio reflects both scale and stability, supported by long‑term assets and a disciplined development strategy.

Our current track record includes:

• Jelgava Rental Portfolio: 234 rental units (116 completed and 118 under development), supported by EU structural funds.
• Asset Base: a consolidated real estate portfolio exceeding EUR 40 million.
• Repaid Loans: Villa Astor and Barona 92 loans fully repaid, demonstrating disciplined financial management.
• Completed Developments: Amber Park, Villa Astor, and Barona 92 apartments successfully delivered.
• Active Development Pipeline: Terra Dunte (Duntes Park Stage 1), White Amber, Terbatas Lofti, and Meira Garden. Fundraising for these projects: through Devon and institutional capital - is fully complete, and all required development financing has been secured. Notably, Meira Garden is already 40% reserved, confirming strong market demand.
• Future Prospects: Juglasciems Village, Biķernieku 13A, and Brīvības 249A, for which fundraising is ongoing to support the next development stages.

Closing Message

Devon is entering a new era defined by regulatory strength, operational resilience, and long‑term investor protection. MJL Group stands firmly behind this evolution, supported by a solid asset base, institutional partnerships, and a clear strategic roadmap.

We value the trust our community has placed in us. Our commitment remains unchanged - we will continue delivering on our obligations with transparency, responsibility, and long‑term vision.

In recent weeks, we have also received strong confirmation from the market: customer interest in Terra Dunte and Terbatas Lofti continues to grow, reinforcing demand for our developments and validating our business model as we move forward.

Our operational plan remains consistent. We continue building, delivering projects, and repaying Devon loans at their scheduled maturity dates.

The upcoming MJL Group bond issuance is a strategic safety mechanism, not a replacement for Devon financing. We are not refinancing all loans with bonds because doing so would introduce unnecessary costs and reduce the flexibility Devon provides. Instead, our goal is to demonstrate clearly that our existing asset base is strong enough to refinance Devon loans in full if ever required.

This level of preparedness and responsibility is what our community deserves - and what we are committed to upholding.

Warm regards,

Janis Lagzdins CEO,

MJL Enterprises