CapitalRise, the London-based property investing platform which was founded by property veterans Alex Michelin and Andrew Dunn of Finchatton and FinTech expert Uma Rajah, launched in July 2016, announces its second deal on prestigious Grosvenor Square, regarded as London’s most famous square. The project aims to raise £1m to complete refurbishment works at 18 Grosvenor Square with a 3,500 sq ft lateral apartment and an expected sales price of £18.8m.
CapitalRise’s launch project was a listed home on prestigious Eaton Square, arguably one of the prime addresses in London. The project raised £1m in subscriptions in just 8 days since launch for the refurbishment of a grand 2,400 sq ft, three-bedroom apartment with its own grand entrance hall and a private garden. “Delighted” at the “extraordinary” take up of the first investment opportunity on Eaton Square which closed in just 8 days since launch, CEO Uma Rajah commented:
“With the first deal closing so quickly, we have fast-tracked the second deal on the platform. Once again, we are giving everyday investors access to some of the finest real estate in London with an investment opportunity in an apartment at 18 Grosvenor Square with expected annual interest returns of 10 per cent.”
CapitalRise aims to differ from other platforms in that it offers higher returns (typically from 10%-18% per year), charges no fees and gives direct access to some of the finest real estate; investments can start from £1000. The founding team, who touts a combined 75+ years of direct real estate development & investment experience between them, invest alongside investors in every deal.
“We suspect the current market conditions such as the volatility of the stock market, low yields from Bonds, the falling pound and concerns about bank interest rates have probably increased the attractiveness of these investment deals,” Rajah added. “Real estate has historically been a strong performing asset class* to invest in but until now, the higher grades of investment were previously only on offer to institutions or high net worth investors.”
The platform also has advantages for property companies. CapitalRise hopes to offer a new source of finance for development projects, at a lower cost and with more efficiency than has traditionally been available to them. Each developer, and their proposed developments, will be carefully reviewed by the CapitalRise founding team seeking to identify development opportunities that can provide solid returns on investment.
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