EstateGuru, a platform that matches borrowers with investors, has provided a half year update on its activities.
The company reported that during the first 6 months of the year, EstateGuru has financed 269 separate real estate projects raising €44 million. During the same period, investors received €51 million in repayments generating an average rate of return of 9%.
Mihkel Stamm, CEO of Estateguru, said the lending volume was around €7 to €8 million a month with the total loan portfolio being “stable” at approximately €300 million. Stamm added that new investor registrations have been “outstanding” with over 5000 new registrations bringing the platform’s total to 157,000.
“In the first half of the year, we saw renewed interest from investors, which is very important for us. A total of 55% of all investments were made using our Auto Invest feature, which confirms that experienced investors maintain their trust in the quality of the projects we offer,” said Stamm.
Stamm shared that the use of the automated investment option increased by 49% when compared to the previous year.
Acknowledging the challenging economic environment, Stamm state that there has been growing interest from borrowers, driven by the higher rates from loans from banks. All loans originated on the platform are secured with the first lien.
Estateguru, which recently was approved under ECSPR, has adjusted its strategy by focusing more on bridge lending with existing, performing borrowers.
The company said that to reduce concentration risk, the maximum limits for development loans have been lowered. EstateGuru said they are tightening underwriting policies as they aim to acheive “an institutional grade standard.”