Conrad Capital hails successful launch of bridging loan investment fund


bridging loan investment fund

London based real estate lender Conrad Capital Investments has hailed a “substantial” response from investors to its maiden Conrad Real Estate Lending Fund.

John Clifford, Managing Director of Conrad Capital said he had been pleasantly surprised by the interest shown since the fund, managed by Guernsey Fund Managers Obsidian, went live on October 1.

“I was expecting a trickle, given that although a new property fund in Guernsey is news, it is not unique news. But the interest has been much better than anticipated” said industry veteran Clifford.

The fund allows High Net Worth individual investors the option to invest in real estate without having to buy or sell it directly, by investing in a portfolio of short-term bridging loans, secured by way of a first or second charge upon premium residential and commercial property situated in the United Kingdom.

Regulated by the Guernsey Financial Services Commission, the fund offers a targeted return to investors of 6% to 7% per year. It has a minimum investment of £250,000, with subscriptions accepted on a monthly basis, following which there is a minimum holding period of at least 12 months, with redemptions available on a quarterly basis thereafter.

“We have thought about creating a fund like this for some time,” explains Clifford. “We felt this was a good time to launch, given the UK property market is very buoyant. It has picked up considerably this year as the fallout from Brexit begins to fade and arguably, we come out of the back end of Covid. We have seen a number of sales offers over the asking price on £1million plus houses and also early redemptions on our loans.”

Conrad Capital was formed in 2017 and offers first and second charge bridging loans secured against residential and commercial property. It also assists with other forms of lending and finance requirements, including cars, art, gems, watches, bullion and securities.

In addition, Conrad offers philanthropy services to its base of High-Net-Worth Individual clients and investors.

It also owns the Conrad Family Office in London, providing clients and families with services such as trust and estate planning and international mortgages.