Shojin Property Partners completes crowdfunded mixed use development project
Shojin Property Partners has completed its fifth crowdfunded, large-scale, mixed use development scheme.
Just over £2.3 million was raised in four weeks from investors for the development of The Royal Crescent Apartments, opposite Ocean Village in Southampton. The scheme comprises a part five, part seven storey block with underground parking and 101 flats, 62 car parking spaces and over 5,000 square feet of commercial space. This development forms part of the regeneration in the area and Shojin Property Partners worked with Southampton City Council to increase the number of units from 88 to 101.
With a total development cost of £13.2 million, the scheme is expected to be fully exited in April 2018, when it will be available for occupation. The estimated value of the development on completion is around £22m.
The Southampton development is expected to show a return of 66% to investors over the 32 months (around 25% annualised) to investors. If an investor had invested £10,000 they are due to receive £16,600 in capital and interest.
Shojin Property Partners has also raised just under £2 million in investor capital for a further two crowdfunded developments. These include a mixed-use planning enhancement scheme in Southend-on-Sea, which is expected to be completed in Q2 2020 and a residential development scheme, The Hyde, in Colindale, London, which is expected to be completed in Q3 2019.
Shojin Property Partners’ crowdfunding platform was developed to bring together like-minded people with a common goal of investing in property development, while offering returns between 20% – 25% annualised. Investors have the opportunity to invest as little as £5,000 alongside seasoned professionals and can start earning returns as soon as they invest into a project. Once funds have been invested in a project, investors will receive interest of 5% per annum on their capital while the project begins.
Over the past eight years, the Shojin team has successfully completed six residential investment projects and has raised and invested in excess of £14m in projects, with development values of over £100m.
Jatin Ondhia, pictured, CEO, Shojin Property Partners, said:
“We have been delighted by the response that we’ve received from investors for our range of crowdfunding development projects.
“Until now, most investors have focused only on the buy-to-let market, mostly because they did not have access to property development opportunities. We give investors access to the lucrative development market, backed by our extensive expertise.
“Shojin has a very experienced and qualified team to carry out thorough due diligence. We oversee each project until completion. What makes us unique is that we look after our investors’ interests and are only rewarded at the end when a project completes and the investors have been paid their profits.
“Our model is unlike many of the other crowdfunding platforms as our interests are totally aligned with our investors throughout the entire process. We don’t take large upfront fees, only then to leave the investor to fend for themselves for the outcome of the project. We co-invest our own money alongside every investor on every project, and then share profits at the end.”