CROWDSTACKER has launched its first crowd bond, letting investors back property developer St Mark Homes.
The product is part of the business platform’s move to expand the range of products it offers.
St Mark Homes is looking to raise an initial £2m from a 30-month bond to finance residential-led developments, the majority of which will be eligible for the government’s Help to Buy scheme.
Investors are being offered annual interest of six per cent in return for a minimum investment of £500.
Investors have the ability to hold the bonds as part of their annual ISA allowance, or receive tax-free income from it as part of their personal savings allowance.
St Mark Homes’ chief executive Barry Tansey said the company aims to source sites where it can build between 10 and 50 new homes of varying sizes, which would typically be sold off-plan.
“The demand for new housing within the government Help to Buy threshold levels remains robust,” he said.
“We’ve been building houses for nearly twenty years and have experienced both the downturn in 2007/2008, as well as the boost provided to the industry by the Help to Buy scheme.
“Our projects have in the past, and we plan to continue to provide, a range of housing, including first time buyer and affordable homes. We’d like to expand what we’re doing, whilst being able to offer investors an attractive rate of return.”
St Mark Homes is listed on the London NEX Growth Market, an SME exchange supporting issuance of both corporate bonds and equities.
The bond is the first fixed-income investment offered by Crowdstacker since the platform announced it will be offering more than just P2P Loans.
“P2P platforms are naturally evolving towards being a part of mainstream investing options and we see the inclusion of products such as bonds and loan notes as a natural extension of what we seek to do – aiming to provide good quality fixed income investment opportunities for everyday investors,” Karteek Patel, chief executive of Crowdstacker, said.
“It also means we can choose the best investment structure for businesses seeking to borrow £1m or more, whilst giving investors what we believe they want, a fixed income, tax free earnings, and the ability to choose where their money is invested.
“Enabling investors to proactively choose exactly which businesses to make investments with is at the heart of our business model. And by offering our members the chance to invest in St Mark Homes we are enabling them to gain exposure to the still buoyant Help to Buy market and support this country’s need for high quality, sensibly-priced housing.”