Sourced Capital, a UK property investment platform and wholly-owned subsidiary of the Sourced Group, has announced that it received direct authorization from the Financial Conduct Authority (FCA) and “acquired Peer Funding Limited, a peer-to-peer business platform.”
Sourced Capital says that it proved its solid track record and its ability to address the Regulator’s requirements and standards “as part of the application process, and the company completed the acquisition of Peer Funding Limited under close scrutiny of the FCA.”
Obtaining approval from the FCA is a key milestone for the company which launched back in 2019. This should help Sourced Capital to increase funding lines to the Sourced Franchise network of property developers, which has “doubled in size over the past 12 months.”
As mentioned in an update shared with CI, this will also “enable the company to develop new innovative products and opportunities for investors to diversify their investment portfolios.”
As the fintech funding division of Sourced Group, Sourced Capital offers asset-backed property development investment opportunities to “sophisticated, high net worth (HNW), corporate and institutional investors.”
It will continue to “increase funding for viable residential property developments in the UK, and with a specific focus on more sustainable housing.”
Sourced Capital uniquely “only funds property development projects from Sourced Franchise, its exclusive network of property developers, meaning all borrowers are directly connected to the Sourced Group.”
Derek Pratt, Commercial Director at Sourced Capital, stated:
“We have gone from proof of concept to directly authorized and approved by the FCA in a relatively short period of time. With our sister company Sourced Franchise doubling its network over the past 12 months, there is unprecedented demand for our funding services. This, coupled with a strong appetite from our ever-increasing investor base, means we are well positioned for growth in 2022 and beyond.”
The property investment firm is reportedly seeing steady demand from property developers in the regions for opportunities “to carry out refurbishment, mixed-use, and new build property schemes.”
Sophisticated, HNW and institutional investors are always seeking opportunities to diversify their investment portfolios, and this method of property investing is “proving popular due to the returns that can be achieved,” the announcement noted.
As explained in the update, this type of investment is “not appropriate for everyone but considering the combined benefits of first-charge property security, the capability to use ISA allowances or pension funds for tax-free interest returns, and robust ongoing credit management, it is understandable why Sourced Capital is seeing increasing numbers of investors approaching them to establish a trading relationship.”
Derek Pratt added:
“Our senior team is made up of a combination of property, finance and technology experts who support Sourced Franchise developers. This has enabled us to build an investment model that has delivered zero losses and average returns of circa 12 percent per annum to investors to date. We want to make property investment more accessible and easier for investors, and we are doing this through Sourced Group’s unique property ecosystem which provides holistic services to property developers and challenges traditional property market approaches through expertise and innovation.”
Sourced Capital also noted that they’d like to thank Berman Solicitors, Thistle Initiatives, Peer Funding Limited, and the FCA for their support.