Peer-to-peer property lender CrowdProperty has launched an equity crowdfunding offer on Seedrs. The campaign has quickly topped the minimum target of £600,000 for a 3.68% equity stake in the platform. CrowdProperty has a pre-money valuation of £15.7 million.
In 2017, CrowdProperty listed a pre-Series A offer on Seedrs that valued the company at £5.9 million.
CrowdProperty notes that the public securities offer comes soon after the company announced the backing of a major financial institution to lend up to £100 million of capital to CrowdProperty’s property projects over the coming 12-24 months.
CrowdPropert promotes investments that return up to 8% per annum noting that, to date, the investment platform has not experienced any loss of capital for its investors. CrowdProperty also offers an IFISA providing tax free returns.
For borrowers, CrowdProperty offers short term loans at a current rate of 0.62% to 0.88% for credit from £100,000 to over £5 million. Funding decisions may be made in under 24 hours.
“Since then we proved that we can rapidly scale the business with investment, building up an exceptional rate of direct origination of quality property projects. This, coupled with the recent £100 million backing from a major institution and an engaged base of retail lenders, provide very strong lead indicators for our next phase of growth,” said Bristow. “SME property developers are poorly served by traditional lenders yet are increasingly important in tackling housing under-supply and developing the c.300,000 homes needed every year to meet the nation’s demand.”
Bristow believes that CrowdProperty is well placed to serve the market better given a fundamental understanding of property professionals’ needs, offering a deep expertise-led service proposition and providing property professionals completing quality property projects with quick, straightforward finance.
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