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Turning a challenge into an opportunity: Juglasciems village development

We are happy to announce a new lending opportunity on the Devon platform: Juglasciems Village (Stage 1). This project represents a classic "distressed asset" turnaround, where strategic management and fresh capital unlock significant market value in a high-demand location.

While the site has a history of stalling under different management, MJL Enterprises has stepped in to acquire the project, settle outstanding debts, and fast-track development to meet demand for premium plots in the Riga area.

Juglasciems Village is not just a development; it involves the acquisition and infrastructure development of 76,804 sqm of land, subdivided into 60 individual plots.

The demand for land in this specific pocket of Riga is quite high; currently, nearby plots developed by competitors are 100% sold out.

• Market Reality: Transactions in this area typically close between 50–70 EUR per sqm.
• Valuation: While the current land value sits at €2,500,000, the estimated market value after infrastructure completion and subdivision is projected at €3,840,200.
• The "Clean Slate" Approach: By taking over a distressed project, MJL Enterprises is cleaning up the capital stack and ensuring all prior investors' debts are settled, allowing for a smooth, professional development phase.

First rank mortgage

Security is at the heart of this deal. Unlike mezzanine structures that sit behind other lenders, Devon investors will be secured by a first rank mortgage registered on the land plots.

A dedicated legal entity will be formed to hold and enforce the mortgage, ensuring that investors' interests are prioritised and protected throughout the loan's lifecycle.

Clear Exit: Bank Refinancing

We have a defined path to repayment. Lenders will be fully repaid once the infrastructure construction (roads, electricity, water, sewage, and internet) is completed. At that stage, the project will be refinanced in full with senior debt from a traditional bank, providing the liquidity to exit Devon investors.

Skin in the game: 13% equity contribution

We believe in the alignment of interests. MJL Development is not just managing the project; they are financially committed too. MJL Development is providing €375,000 in equity, which represents 12.2% of the total project cost. This "skin in the game" ensures the developer is fully incentivized to deliver the project on time and within budget.

Juglasciems Village is a prime example of finding value where others see obstacles. By acquiring a distressed asset in a "sold out" neighbourhood and backing it with a first-rank mortgage and significant developer equity, we are providing our lenders with a high margin opportunity built on a foundation of real-world demand.