A NEW peer-to-peer property platform has launched, connecting individual investors with development finance opportunities across the UK.
Propio, which has been set up by London property developer Fruition Properties, offers both debt and equity investments on its platform. Users can allocate money to specific projects or to a selection of pooled bonds that invest in multiple opportunities.
There are also plans to launch an ISA product this autumn.
Loans are secured against the property and typically return around eight per cent, while the riskier equity investments could return 15 to 20 per cent per year.
There is a minimum investment of £1,000.
Propio said that the platform has been road-tested over the past year by its expert team of developers and that its directors have invested their own money into every single opportunity to date.
Investors get their cash back when loans are repaid or developments are sold, with the duration depending on the type of project and on whether investors have taken a debt or equity stake.
The platform focuses on developments that have already obtained planning permission. Propio said that it uses its network of investment and property contacts to find suitable projects and completes “a rigorous 52-point assessment” of both the investment and the developer.
“Our ambition is to democratise property investment, demystifying the development process so that retail investors of all backgrounds can access the sorts of returns previously only available to the financial elite,” said Propio co-founder Parul Scampion.
“Of course, development is more risky than keeping cash under the bed, but with returns up to 20 per cent, there is potential to tap into far greater returns than many other platforms offer.
“Our fintech platform opens up exciting new avenues of funding for developers keen to share equity with others or whose schemes may not be big enough to excite the major banks who have been told to rein in lending.”