CrowdProperty, the UK’s leading specialist property development lending platform, is delighted to announce a total of £100,000,000 has now been paid back to investors at an average realised IRR of 8.30%, whilst maintaining the 100% capital and interest payback track record of the business which has been lending since 2014.
This latest milestone is a direct result of CrowdProperty building the leading specialist property development lending platform in the market, with proven sustainability and reliability of guaranteed funding from diverse sources of capital through an uncertain economic backdrop, coupled with building the best property development lender in the market for small and medium sized developers based on an intimate understanding of the pains and needs of this market. CrowdProperty’s unique ‘property finance by property people’ proposition attracts quality developers undertaking quality property projects. With a total of £8bn of applications for finance received to date, the focus remains on offering carefully and robustly curated quality lending opportunities, drawing on unique levels of data, analytics, market knowledge and deep expertise to predict, mitigate and manage risk on behalf of institutional and platform investors (with platform investors lending directly or through IFISA / pension accounts).
All CrowdProperty loans are first-charge secured on the RICS-assessed value of the underlying 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% contract 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 60.1%;
Loan to gross development value (LTGDV) 55.4% (excluding interest) and 59.7% (including interest).
CrowdProperty has delivered strong growth through the last 3 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. CrowdProperty has now funded the development of £360,000,000 of property projects, the construction of 1,800 homes, agreed £215,000,000 of facilities and lent £170,000,000, all expertly curated from over £8bn of funding applications. The business continues to work extremely hard to provide an ever-increasing number of quality opportunities for its investors, leveraging market-leading technology for efficiency and deep property expertise for effectiveness of lending.
Mike Bristow, CEO of CrowdProperty, commented:“We’ve now paid back £100,000,000 in capital and interest to lenders with an average rate of return of 8.30% p.a. and a perfect, 100% capital and interest payback track record.
Investor liquidity across diverse sources of capital remains at high levels, as platform and institutional investors look for the yield, quality and security that CrowdProperty has proven to deliver through seven years of lending. Earlier this year, we closed a £300 million funding line from a major global investment manager to complement our existing institutional backers, which is yet another game changer in unlocking robust and reliable scalability.
We’ve seen strong growth and continue to work hard to maintain a sustainable, profitable business with a big future ahead. We are looking to deepen our competitive advantage and bring a progressively more valuable proposition to both sides of the marketplace with a number of significant product launches planned for 2022, alongside aiming to increase staffing numbers by 50% and the amount we are capable of lending by 300%+.”
As with all marketplace lending, capital is at risk and not covered by FSCS. Past performance is not an indicator of future results. Tax treatment depends on individual circumstances and may be subject to change in future.