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$300,000 Simple Interest Loan - Istituto Marangoni...
Offering short link
Raise Details
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Gross Offering$390,000 USD
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Available Units0.00
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Minimum Investment$50,000 USD
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Maximum Investment$300,000 USD
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Open DateMay 12,2023
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Closing DateMay 17,2023
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Investment TypeOther
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Maturity24 months
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Real Estate UseIndustrial
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Maturity End Date
Type
| Type | Number of Units | Available Units | Cost per Unit | Payback Per Unit | Gross Offering | Annual Yield | Effective Yield | Term |
|---|---|---|---|---|---|---|---|---|
| Series A | 2.00 | 0.00 | $100,000.00 USD | $130,000.00 USD | $260,000.00 USD | 30.00% | 39.00% | 24 months |
| Series B | 2.00 | 0.00 | $50,000.00 USD | $65,000.00 USD | $130,000.00 USD | 30.00% | 39.00% | 24 months |
| Totals | 4.00 | 0.00 | $390,000.00 USD |
Executive Summary
Overview. Chesterfield Faring Ltd. (“Chesterfield”) is providing financing of a 30% Simple Interest $300,000 loan (the “Loan”) secured by $500,000 of student loans (“Student Loans”) owned by Istituto Marangoni (the “School”). The School has an inventory over $5.0 million of Student Loans so Chesterfield can choose its own Student Loans as collateral for the Loan.
Tremendous Growth. Enrollment in the School has grown from 136 students in 2018 to 656 in 2022. Just from 2021 to 2022, the student enrollment grew from 429 to 656, or a 52.91% increase in one year. The School has grown the student base and revenues almost 5X since 2018 inception. That growth is expected to increase after the school obtains educational visas for non-American students. The market is huge in Latin America from both Argentina and Brazil. Marketing will commence late 2023. It is possible for the student base may grow almost another 50% in 2023.
Use of Proceeds. The School plans to use the funds to obtain licenses from the State of Florida for new in-person and online courses that are projected to add over $1 million in gross revenues after two (2) years.
Terms of the Loan. Chesterfield is issuing and selling three (3) $100,000 units (“Units”) totaling $300,000. Chesterfield is buying one (1) unit, leaving two (2) Units left. Half Units for $50,000. Each investor will receive a current monthly payment of 1.25% interest (15.0% annually) plus an accrual of 1.25% (15.0% annually). The accrual is paid upon maturity two (2) years from now, a total 30% annual return. On the 9th month, a $25,000 principal paydown of each full Unit will be paid. On the 18th month, another $25,000 paydown on each Unit will be paid. The balance plus accrued interest is paid upon maturity in two (2) years. Since Chesterfield is financing the School’s acquisition of their Building, Chesterfield is guaranteeing your principal repayment of the Loan if a default occurs, which is unlikely.
The School. The School is a modern facility with a new tower added in 2018. The School is 7-stories and 19,819 SF. Chesterfield is currently financing the School’s acquisition pictured on the cover and herein. They license the brand from Istituto Marangoni of Milan, Italy, one of the leading fashion institutes in the world. It has been operating for more than 80 years. It is an established hip brand in the global fashion industry. Miami is the first US location chosen for its growing influence as a global design center.
Borrower. Hakan Baykam is the President and Founder of the Istituto Marangoni Miami. Born in Istanbul, Turkey in 1972, and moving to Italy at the age of six, he is a highly successful entrepreneur in the fashion industry. Having studied at the prestigious Venice University, Mr. Baykam holds a Bachelor of Arts in Economics and a Masters in Communications. In the late 1990s, Baykam worked for a large spectrum of fashion companies in various key roles, from marketing to communications to sales, including: Benetton Sports System; Levi’s Italy; Marzotto Group’s Marlboro Classics clothing licenses; and Miss Sixty Group. He is also active in renewable energies and founded Relight Capital in 2000, which has domestic and international operations including: the first photovoltaic project in Italy, Turkey’s first institutional wind deal, and high-powered onshore wind farms in the U.S and Europe.
Highlights
- Simple Interest Loan
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