CrowdProperty has now paid back £50,000,000 to investors - maintaining its 100% capital and interest payback track record, lending since 2014.
This news follows the recent milestone announcement of surpassing £100,000,000 lent to SME property professionals, with the business having funded the development of over £200,000,000 of property and 1,100 homes - unlocking much-needed housing supply and spend in the economy through enabling SME property professionals to deliver quality property projects. CrowdProperty has enabled over £80m of spend on labour, materials and services in the UK economy.
CrowdProperty has proven to be a sustainable and reliable source of finance through the toughest of economic backdrops, as one of the only active development lenders throughout the COVID-19 pandemic. With an average of £200,000,000 of project applications received monthly, the focus remains on offering carefully curated, quality lending opportunities, drawing on data, analytics, market knowledge and deep expertise to predict, mitigate and manage risk on behalf of lenders.
All CrowdProperty loans are first-charge secured on the property assets, meaning that not only are CrowdProperty loans first in line to be paid back, but also CrowdProperty is able to be in control of any recoveries action, which is often overlooked in importance.
The business provides a strong risk / reward proposition, considering the up to 8% returns offered by CrowdProperty, with first charge security exposure averages as follows:
Loan to value (LTV, or initial funds release relative to RICS-assessed market value) of 59.7% (55.9% in the 2020 cohort);
Loan to gross development value (LTGDV) 53.6% (excluding interest) and 58.5% (including interest).
CrowdProperty has seen strong growth in annual lending of 1,371% through the last 3 years and revenue growth of 1,019% through the last 3 financial years. Whilst profitable and robust, the business continues to invest in team, systems and processes to build deeper efficiency and effectiveness to support a much larger lending business vision, for which there is already huge demand.
Mike Bristow, CEO of CrowdProperty, commented:“We’ve now paid back £50,000,000 in capital and interest to lenders with an average rate of return of 8.74% p.a. and a perfect, 100% capital and interest payback track record.
Investor liquidity has been higher than ever at CrowdProperty, bucking the trend of all investment classes and the alternative finance sector, as retail and professional investors look for the yield, quality, and security that CrowdProperty has proven over many years. We see the large increases in lender registrations and capital inflows into CrowdProperty as a flight to quality – capital flowing towards platforms with long and very successful track records that have built trusted brands and are focused on building very long-term lending businesses.
We’ve seen strong growth and continue to work hard to maintain a sustainable, profitable business with a big future ahead.”