CapitalRise, a property crowdfunding platform that lets people invest in real estate for as little as £1000, has announced it has raised £.1.35 million for a luxury homes development in Hampshire. This is the platforms largest funding round to date.
CapitalRise said their recently launched CapitalRise IFISA proved hugely popular with over 64% of customers using their ISA allowances to invest in the opportunity, with estimated tax free earnings of 10% per year.
Uma Rajah, CEO of CapitalRise said they were thrilled with the results of the offer and the utilization of their IFISA. She added that many investors transferred money from other providers to achieve a higher return.
“Investing in fine real estate has so far only been available to the wealthy and institutions with millions to invest. CapitalRise changes this by allowing anyone to invest in these attractive luxury properties from as little as £1000, and opening up the higher returns that are available,” said Rajah.
CapitalRise said it structured this latest investment so that property prices would have to fall by over 34% from the anticipated sale value for investors’ funds for returns to be at risk.
The development, “Woodhill”, is being built by Hampshire-based Alfred Homes in Chandler’s Ford, which is 90 minutes from central London and is very close to the M3 for easy access to Southampton. Woodhill will offer two three-bedroom and ten four-bedroom homes designed by architect Andrew Smith, and is expected to complete by the end of 2018. The Woodhill investment opportunity is an estimated two-year term.
Alfred Homes was described as an experienced housebuilder having sold 66 homes to date, with a total value of £69 million. Sales prices for these homes were between £500,000 and £3.25 million. CapitalRise added that a recent deal for 38 Yeoman’s Row in Knightsbridge was so popular with investors that the offer closed in just 71 hours.
CapitalRise said the founders themselves invest their personal money in every deal alongside investors.
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