CapitalRise IFISA helps reach record property fundraise
PEER-TO-PEER property lender CapitalRise has held its largest fundraise to date, with almost two thirds of its lenders using the platform’s Innovative Finance ISA (IFISA) to invest in its latest project.
CapitalRise has raised £1.35m to fund development of a range of luxury homes in the Hampshire commuter belt, offering investors 10 per cent interest per year.
Uma Rajah, chief executive of CapitalRise, said 64 per cent of investors used the IFISA, while 34 per cent had transferred funds from other providers.
“We’re thrilled at the take-up of our IFISA and with the number of people transferring in from other providers to achieve a higher return on their investments,” Rajah said.
“Investing in fine real estate has so far only been available to the wealthy and institutions with millions to invest. CapitalRise changes this by allowing anyone to invest in these attractive luxury properties from as little as £1,000, and opening up the higher returns that are available.”
Named ‘Woodhill’, the development will include two three-bedroom houses and 10 four-bedroom homes in a leafy area of Hampshire, within a 90-minute commute of London.
Work is expected to be completed by September 2018. Potential investors have been told that the value of the property would have to decrease by more than 34 per cent before investors’ capital or returns are at risk.