CapitalRise launches £1.35m investment on commuter homes

PEER-TO-PEER property lender CapitalRise is seeking to raise £1.35m to build a range of luxury homes in the Hampshire commuter belt.

Launching today, the investment will be available through the platform’s Innovative Finance ISA (IFISA) wrapper, and aims to deliver returns of 10.5 per cent to investors on a minimum commitment of £1,000.

This is the largest single raise in CapitalRise history, and it is the first time that the platform has offered commuter property developments for investors.

Read more: CapitalRise closes largest fundraise to date thanks to IFISA inflows

“The residential real estate market offers opportunities for shrewd investors across the country and not just in London,” said Uma Rajah, chief executive of CapitalRise. “We are thrilled to be offering a prime development in Hampshire to everyday investors wanting to invest via the CapitalRise platform.

“We’ve raised more than £4.2m to date and expect the next deal to close quickly, particularly with the opportunity to generate tax-free returns via our IFISA, and to transfer in ISAs from other providers, which customers have told us they really want.”

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.

Read more: CapitalRise unveils IFISA ahead of new property deal

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.