Dedicated prime property investment platform CapitalRise announced on October 19, 2021 that it has now returned £66m in capital and returns to investors, “maintaining its unblemished track record of no investment losses or investment defaults since inception.”
Of the total £66 million in redemptions, over half of it has been returned to investors in the past year on initiatives which were affected by Covid thereby showcasing the quality of its loan book despite the economic pressures of the Coronavirus crisis.
With in-depth knowledge of London prime property, CapitalRise has been successful at demonstrating a solid commitment to originate loans last year and in 2021 and has continued to offer steady returns for investors as a result.
CapitalRise was established in 2016 by Uma Rajah and the founders of Finchatton, Alex Michelin and Andrew Dunn.
Finchatton is one of London’s leading real estate development firms with over £1.5 billion of projects currently in progress. CapitalRise was launched to address the funding gap for prime property finance “created by the retreat of traditional lenders due to regulatory changes that have come into force since the global financial crisis.”
These changes have made the sector “a less attractive lending asset class compared to other types of lending for traditional lenders but consequently provided an attractive opportunity for alternative lenders with specialist expertise in the sector,” the announcement noted.
The platform “carefully structures its loans” in the interest of investors and developers, the announcement noted while adding that all loans are secured against the prime property assets themselves and investors can “benefit from attractive returns after just 17 months – CapitalRise’s current average investment term.”
Recent investment opportunities for CapitalRise investors have reportedly included a residential development in Bloomsbury “with a GDV of £14 million, as well as investments into prime residential development projects in Wilton Place, Belgravia; Elm Park Road, Chelsea and Bream’s Buildings in Holborn, Prime Central London.”
CapitalRise CEO and Co-Founder, Uma Rajah, stated:
“Our latest redemption milestone showcases the quality of our portfolio of investment opportunities. We have been able to consistently offer very secure loans against the development of prime properties in the most prestigious areas of London and the South-East. This coupled with our team’s expert knowledge, rigorous due diligence process, careful loan structuring and stress testing, and meticulous loan monitoring means that we have proven our resilience in the market, especially when navigating through the challenges of Covid-19.”
The prime property market has remained quite resilient during COVID and London prime house prices are “returning to growth in 2021.”
As market confidence comes back and the UK economy recovers, the value of residential prime property in London is “forecast to increase by 18.7% over the next five years, making loans into prime property developments a particularly attractive asset class for high-net-worth and sophisticated investors.”
