CapitalRise Update: Delivers Double Redemption at Average Return of 20.6% For Investors

Following the launch of its equity crowdfunding campaign on Seedrs, online property crowdfunding platform CapitalRise announced on Wednesday its latest two redeemed loans that have concluded within schedule and on target, delivering a total return of  20.6% on average for investors against prime properties located in Central London and Hampshire.

As previously reported, CapitalRise was founded by Alex Michelin and Andrew Dunn who founded Finchatton, an international luxury property development firm. According to the company, the pair have developed over £1.2 billion of real estate across 120 transactions with no losses. They have been joined by CEO & Co-founder Uma Rajah a Fintech “pioneer”  who was an early employee at Wonga. To date, CapitalRise reports having lent over £25 million against over £270 million of property assets in locations such as Mayfair, Knightsbridge, and the Home Counties.

CapitalRise reported that in the first project its investors quickly funded a £1.2 million development loan that went towards converting a former office property on London’s renowned Strand, located opposite the Royal Courts of Justice in the City of London, into nine luxury apartments, with the project achieving forecasted returns of 11.5% per year on exit. The second investment comprised a £1.35 million loan to assist with the acquisition and development of a 12-home scheme in Chandler’s Ford, near Winchester, that delivered targeted returns of 10.5% per year for CapitalRise’s investors within 21 months of financing the project.

Speaking about the projects, Uma Rajah, Co-founder and CEO of CapitalRise, stated:

“These latest redemptions further enhance our exemplary track record of delivering the solid returns that we promise to our investors. The timing of these loans, which were both underwritten at an undeniably stronger point in the market’s cycle, provide evidential confirmation that the investment opportunities on offer through CapitalRise’s platform continue to outperform; this is because of the strict lending criteria we’ve set for the business, which will only consider proven developers borrowing against the best properties in the strongest locations, and with substantial safety margins factored in to our financing model to withstand the inevitable peaks and troughs that come with the UK housing market.”

Meanwhile, CapitalRise’s Seedrs crowdfunding campaign has already attracted over 450 individual investors from across Europe, with the exciting opportunity to become shareholders in this fast-growing business still open, having rapidly raised more than £1.9 million within a week of its public launch. Rajah went on to add:

“As we continue to pay out such attractive returns from exited investments, we’re working hard to satisfy the surging demand for access to new opportunities via our platform. Our equity raise currently underway with Seedrs will provide us with additional firepower to ramp up business activities, while at the same time allows new and existing shareholders to share in our success.”

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