Property project lending platform signs £300m funding line agreement
A Birmingham-based specialist peer-to-peer lending company for the property sector has signed a £300m institutional funding line agreement with a new investment manager.
The funding line is a five-year agreement designed to complement CrowdProperty’s existing sources of capital.
The news follows a hat-trick of lending records in May where CrowdProperty lent £8.3m, paid back £7.5m and received £285m of funding applications from SME property professionals.
CrowdProperty then initiated £16m of new facilities and lent £8.8m in June.
The business has now funded the development of 1,501 homes worth £297m, originating £181m of agreed facilities and lending £141m to date.
Mike Bristow, chief executive of CrowdProperty, said: “Despite the fact that we’ve supported £300,000,000 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+ of lending p.a. 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.”
