CapitalRise, a new property investing platform enabling everyday investors to sidestep middlemen and invest directly in some of the finest real estate, has not only gone live but has fully funded. According to the platform, CapitalRise differs from other platforms in that it offers higher returns (typically from 10%-18% per year), charges no fees, gives direct access to some of the finest real estate, and investments can start from £1000. The platform’s first initiative was a listed home on prestigious Eaton Square in London. The project raised £1m for the refurbishment of a grand 2,400 sq ft, three-bedroom apartment with 12ft high ceilings, its own grand entrance hall and a private garden. According to a CapitalRise spokesman, the Eaton Square campaign will not overfund, but need not worry: another campaign is expected to launch on CapitalRise within a few days.
CapitalRise’s founding team includes property veterans Alex Michelin and Andrew Dunn of Finchatton and FinTech expert Uma Rajah who tout over 75 years of direct real estate development and investment experience between them, and themselves invest in every deal alongside investors.
“With a reported 21% of UK adults earning 0.5 % or less interest on their savings due to low interest rates and limited product choices, many savers are looking for other or additional options. Real estate has historically been one of the best performing asset classes2 to invest in but the higher grades of investment were previously only on offer to institutions or high net worth investors3,” noted CapitalRise CEO Uma Rajah. “At CapitalRise, we are determined to change this and give everyday investors access to a new profile of investment which could generate returns of 10-18%. ”
Rajah, a Cambridge and INSEAD MBA graduate, was appointed CEO of CapitalRise in December 2015, having spent the last decade launching and developing FinTech products, recently as Head of Product at the Wonga Group. She has also held senior positions at the Mars Confectionary and is responsible for CapitalRise’s launch to market.
CapitalRise was the brainchild of Alex Michelin and Andrew Dunn, the directors and founders of Finchatton, the international design and development firm they set up in 2001. Since then, Finchatton averred in a release that it has completed in excess of £1bn worth of development over more than 120 projects in London and abroad and established itself at the pinnacle of luxury property design and development. With currently have a pipeline of over £1.3bn worth of development under construction, Michelin outlines the advantages of the platform for both investors and property companies.
“Over the past 12 months, we’ve developed a model which we believe is what everyday investors are looking for – access to the finest real estate investment opportunities that generate excellent returns with no fees,” added Michelin. “Historically, the only option for most people has been expensive and indirect investment through funds or REITs. CapitalRise aims to disrupt this old way of investing in property. For property developers, CapitalRise offers a new source of finance for their projects, at a lower cost and with more efficiency than has traditionally been available to them.”
Each developer and their proposed developments, will be reviewed and scrutinized by the CapitalRise founding team who, with their 75 years’ combined experience in designing, managing and financing property developments, are well placed to identify those development opportunities that can provide solid returns on investment.
“Every investment opportunity placed on the platform will have personal money invested in it by myself and Alex too,” commented Dunn.“We want to enjoy and share in these high rates of return, and show other potential investors how confident we are in the opportunities we have selected.”
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