CapitalRise closes largest fundraise to date thanks to IFISA inflows
PROPERTY peer-to-peer platform CapitalRise has completed its largest fundraise to date in under a week thanks to new Innovative Finance ISA (IFISA) investors, channelling £1.2m to its latest property project.
The property investment platform launched its IFISA on 13 March to offer investors returns ranging between 10 and 14 per cent, a move that helped it clinch £900,000 by close of business day on the launch of its fourth deal – a refinance of residential development Strand Chambers on the Strand in London.
The latest fundraising brings the firm’s total lending to £4.2m, which is set to increase in the second quarter as the platform prepares to launch a fifth deal, it said on Tuesday.
“Investing in prime London residential property is no longer reserved for the very wealthy,” said the platform’s chief executive Uma Rajah. “Our ISA has given small investors, who perhaps can’t otherwise afford to get on the London property ladder, the chance to earn attractive returns from prime real estate in the capital.”
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CapitalRise’s previous deal for 38 Yeoman’s Row was so popular with investors that the offer closed in just 71 hours, she added.
While the Strand deal is now fully funded, investors signing up on the firm’s platform will be given priority early members’ access to the next investment opportunities, some of which will be launched between now and the end of June.
The platform typically provides an extra layer of protection by ensuring that developers take the first hit if a project makes losses. Moreover, its original founders invest their personal money in every deal, giving them ‘skin in the game’.