CapitalRise delivers double redemption at average investor return of 20.6%

By Bridging Loan Directory 20th March 2019

CapitalRise, the online property crowdfunding platform that connects prime real estate developers seeking finance with investors seeking attractive returns, announces its latest two redeemed loans that have concluded within schedule and on target, delivering a total return of 20.6% on average for investors against prime properties located in Central London and Hampshire.

The underlying properties comprise prime residential developments that were each underwritten in 2017 and comfortably met their respective business plans within the anticipated timeframes, despite shifting market conditions over the course of the investment periods, thanks to CapitalRise’s uncompromisingly prudent due diligence process.

In the first project, CapitalRise investors quickly funded a £1.2 million development loan that went towards converting a former office property on London’s renowned Strand, located opposite the Royal Courts of Justice in the City of London, into nine luxury apartments, with the project achieving forecasted returns of 11.5% per year on exit. The second investment comprised a £1.35 million loan to assist with the acquisition and development of a 12-home scheme in Chandler’s Ford, near Winchester, that delivered targeted returns of 10.5% per year for CapitalRise’s investors within 21 months of financing the project.

To date, CapitalRise has lent against over £270 million of prime property assets. These latest redemptions take the total amount paid back by the platform to its investors since inception to £8.6 million, delivering average returns of over 10% p.a., which have the potential to be tax-free via the CapitalRise ISA. Every investment opportunity launched to date has generated oversubscribed demand, clearly demonstrating the appetite for access to the most resilient segment of the UK’s housing market and its superior yield potential.

Uma Rajah, Co-founder and CEO of CapitalRise, commented:

“These latest redemptions further enhance our exemplary track record of delivering the solid returns that we promise to our investors. The timing of these loans, which were both underwritten at an undeniably stronger point in the market’s cycle, provide evidential confirmation that the investment opportunities on offer through CapitalRise’s platform continue to outperform; this is because of the strict lending criteria we’ve set for the business, which will only consider proven developers borrowing against the best properties in the strongest locations, and with substantial safety margins factored in to our financing model to withstand the inevitable peaks and troughs that come with the UK housing market.

“As we continue to pay out such attractive returns from exited investments, we’re working hard to satisfy the surging demand for access to new opportunities via our platform. Our equity raise currently underway with Seedrs will provide us with additional firepower to ramp up business activities, while at the same time allows new and existing shareholders to share in our success.”

CapitalRise’s Seedrs crowdfunding campaign has already attracted over 450 individual investors from across Europe, with the exciting opportunity to become shareholders in this fast-growing business still open, having rapidly raised over £1.9 million within a week of its public launch.