State financial institution
Scenario A – ILTE
- Loan
- €3.0m (€2.4m repayable)
- Interest rate
- 2.5%
- Annual payments
- ~€315k
- Cash flow
- ~€3.7m / yr
- Repayment
- after 3 years; share pledge
Investment
Transparent numbers. A protected investment.
The investment is offered as equity – shares in the project company. Required investment: about €600k of equity; the remaining €3.0m is debt financing from ILTE or a commercial bank.
Revenue model
beds 510
× occupancy (434) 85%
× per resident / month €2,000
annual revenue ~€10.4m
The 2026 market rate is €1,800/month; from operations start (2027) the forecast rate is €2,000/month. Revenue is backed by state-funded care.
Cost structure
| Staff 0.35 ratio per resident – 2× the minimum requirement | €3.80m |
| Food 10% of revenue | €1.04m |
| Utilities 7% of revenue | €0.73m |
| Maintenance & repairs 4% of revenue | €0.42m |
| Other administrative 4% of revenue | €0.42m |
Total OPEX ~€6.4m EBITDA ~€4.0m (38%)
5-year financial projection
| Year | Revenue (€m) | Costs (€m) | EBITDA (€m) | Margin |
|---|---|---|---|---|
| 1 | 10.4 | 6.4 | 4.0 | 38% |
| 2 | 11.4 | 6.9 | 4.5 | 39% |
| 3 | 12.6 | 7.5 | 5.1 | 40% |
| 4 | 13.9 | 8.1 | 5.8 | 42% |
| 5 | 15.2 | 8.7 | 6.5 | 43% |
Cash flow dynamics
Two financing scenarios
Alternative
Scenario B – commercial bank
- Loan
- €3.0m
- Interest rate
- 7–8%
- Years 1–2
- interest only (~€225k)
- From year 3
- ~€450–500k / yr
- Cash flow
- €3.8m → €3.5m / yr
- Repayment
- after 5 years; pledge
Investor protection
Security is the foundation of this project, not an afterthought.
Real-estate pledge
The primary security is a pledge over the project’s real estate. Project property value: €0.8m, total area 6,000 m².
Share pledge
In the ILTE scenario the company’s shares are additionally pledged – a second line of protection.
Owned property
All buildings are owned by the company. No rent risk, no dependence on third parties.
State-funded revenue
Care services are largely financed by the state and municipalities – revenue is resilient to economic cycles.
Coordinated with ILTE
The financing structure is being coordinated with ILTE, Lithuania’s national development institution.
Phased rollout
The project is implemented building by building, limiting execution risk.
Exit strategy
After ~5 years of operations the project can be sold to a strategic or financial investor. Market valuation benchmark: 8–10× EBITDA. The sector is consolidating, and modern large-scale facilities are rare and sought-after.
8–10× EBITDA
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The information on this website is of a general informational nature and does not constitute a public offering of securities, investment advice or a recommendation. Financial projections are forecasts based on assumptions and do not guarantee future results. Consult independent financial and legal advisers before making any investment decision.