Capital Rise the online property lending and investment platform that connects prime real estate developers with investors, has launched its latest investment opportunity comprising the first tranche of a £6.9m loan to help finance the re-development of a 13,500 sq ft detached villa in London’s prestigious Holland Park.
Since launching in 2016, CapitalRise has lent against over £270m of prime residential assets in the best performing and most resilient postcodes of locations such as Mayfair, Knightsbridge and the Home Counties. Investments redeemed to date have delivered an average return of over 9.5% p.a., with close to £5m paid back from exited investments.
CapitalRise’s compelling investor proposition opens up an asset class traditionally reserved for institutions and High Net Worth individuals to everyday investors. With as little as £1,000 to invest, CapitalRise provides access to the often double-digit returns possible through investing in the UK’s finest properties. The platform has seen a more than twofold surge in its member base over the past 12 months, with every opportunity launched to date generating oversubscribed demand.
This latest project will see CapitalRise underwrite a development loan totalling £6.9m its largest to date, with funds extended being used to refinance an existing lender and fund ongoing construction activities. Located on one of the Royal Borough of Kensington and Chelsea’s most desirable streets, the planned property has been independently valued at £50m and will be finished to the highest luxury specifications featuring five en-suite bedrooms, an underground swimming pool, gym, bowling alley and cinema, with completion expected in summer 2019.
Uma Rajah, co-founder and CEO at CapitalRise said, “CapitalRise was set up with the mission to democratise the prime property investment market. With this part of the market historically proving the most resilient throughout times of market uncertainty, we felt it was important to give retail investors the opportunity to make their money do more.
“Prime is a market that we have longstanding experience of, on both the lending and development sides, allowing us to lend prudently and navigate any stage of the property cycle to find profitable opportunities. Our team has the expertise to select only the highest quality developments ensuring we bring optimum value to CapitalRise investors, who we also invest alongside, and to our borrowers, who we can support at every step of their project.
“Over the coming year we plan to build on this momentum and achieve further growth through writing increasingly bigger-ticket loans, responding to clear investor appetite for more access to the asset class, whilst ensuring we never compromise on the quality of properties we lend against so that we can maintain our impressive performance of returns.”