PROPERTY Crowd investors will be able to trade their loan parts on a secondary market from the third quarter of this year.
Rohin Modasia, chief executive of the property crowdfunding platform’s parent company Global Alternatives, told Peer2Peer Finance News that the firm is looking to build a “capital markets ecosystem”.
A component of this will be its new secondary market, called Prop-X, which he said will open up the real estate investment market to the same type of real-time asset allocation that is available in other sectors.
Peer2Peer Finance News first reported on Prop-X in March 2017, but the company has only recently indicated a time frame for its launch. All securities originated by Property Crowd will be listed on Prop-X, alongside private debt and equity issuances that will be backed by property assets from the institutional sector.
Modasia cited the Brexit vote as an example of a shock to the markets that investors were not able to react to within the property space in the same way as they would in other sectors due to a lack of liquidity.
“Events like Brexit are not infrequent – we are allowing people to adjust their portfolio,” he added.
Global Alternatives acquired Property Crowd two years ago. Unlike typical peer-to-peer property lenders, Property Crowd does not originate the investment opportunities on its platform. It acts as an independent marketplace, connecting investors with opportunities originated by lenders and asset managers. These are offered as bonds and shares on the platform.
Property Crowd launched its Innovative Finance ISA in March 2017, offers tax-free returns of between seven and 12 per cent.
There is a minimum investment of £1,000 and investors manually choose which projects to fund.
Modasia said there has been increased uptake of the IFISA during ISA season and he expects this to continue due to a pipeline of new deals coming on to the platform in the next couple of months.