CrowdProperty secures £300m institutional funding line
Specialist property project lending platform CrowdProperty has signed a £300m institutional funding line agreement with a major investment manager.
This follows shortly after the business reported in May that it had lent £8.32m, paid back £7.52m and received £285m of funding applications from small to medium (SME) property professionals.
In June, the business then initiated £16m in new facilities and lent £8.8m.
CrowdProperty has funded the development of 1,501 homes, worth £297m, originating £181m of agreed facilities and lending £141,000,000 to date.
According to the business, this has supported over £120m of spend on labour, materials and services in the UK economy.
The funding line is a five-year agreement that aims to complement CrowdProperty’s existing sources of capital, including major institutions, funds, family offices, high net worth individuals (HNWs) and private investors.
Mike Bristow, chief executive of CrowdProperty, said: “Despite the fact that we’ve supported £300m of property projects to date, we are still relatively early on in fulfilling our potential in our mission of transforming property finance – to unlock the power of SME property developers in the UK to build more homes, increase spend in the UK economy and ever more efficiently and effectively match the supply and demand of capital for the benefit of all.
“Investor liquidity is higher than ever due to the deep property expertise, high quality origination, 100% capital and interest payback track record and trusted brand built since 2014.
“This is naturally attracting more and more institutional sources of capital looking to work with the most proven, highest quality players with deepest asset class expertise and market-leading track records.
“Platform lenders can rest assured that our team, processes, systems, controls and governance have met the highest possible institutional standards.
“Such a major agreement, coupled with CrowdProperty’s unique and highly valued ‘Property Finance by Property People’ proposition, will grow the volume of quality investment opportunities made available to investors.
“We have built a very strong pipeline that currently stands at over £322m of progressed quality lending opportunities, putting us firmly on track to provide £400m-plus of lending [per annum] by 2024, underpinned by a highly scalable, in-house built, proprietary technology platform, scalable capital sources and deep expertise in exactly the asset class being lent against.”