ASSETZ Capital has funded one of the largest development loans in the UK’s peer-to-peer sector to date.
Investors on the secured property and business lending platform have funded a £9.9m loan for a student development complex in Nottingham being developed by 9 Property Group (9PG).
The loan was financed by Assetz, along with funding from the company’s existing balance sheet.
The new student development, set to be completed in September 2018, will cost £14m overall. It will refurbish the existing site and transform it into a 177-bed student accommodation.
Taj Ubhi, chief executive of 9PG, has borrowed from Assetz before and previously secured a £1.5m development loan through the platform.
“I have been working in the property market for a number of years and have naturally progressed into developing student accommodation,” Ubhi said.
“The latest site in Nottingham will provide students with easy access to both universities as well as the bars, restaurants and other leisure facilities within the city centre.
“With P2P, most people automatically think it’s expensive, but it’s an excellent form of alternative finance that helps to get the deal over the line and take your business to the next step.
“My experience of dealing with the high street banks has been a bit trickier and you don’t get to deal with people in leadership roles.”
Stuart Law, chief executive of Assetz Capital, told Peer2Peer Finance News that it was one of the biggest loans the platform – and wider sector – had seen.
It beats the £7.92m of finance that Lendy lent out in October, secured against a property valued at £12.5m in Kentish Town.
In May, former Peer-to-Peer Finance Association member LendInvest approved a £21m development loan.