PROPERTY crowdfunding platform Shojin Property Partners has hit its fundraising target for its two latest developments.
Shojin has raised £1.63m from 38 investors for crowdfunded projects in Southend-On-Sea and Hampshire.
The Hampshire project, which comprised a bridge loan secured against a detached, residential property, took just five days to reach the funding target of £189,000, Shojin said.
50 per cent of the money raised was from cash ISAs, which were transferred in using the platform’s Innovative Finance ISA, the London-based firm said. Over 80 per cent of the investors in the project were UK based with 20 per cent being international investors.
Investors can expect to receive annual returns of eight per cent with a loan term of 12 months.
The project in Southend-On-Sea, which was an equity raise securing £1.44m, will see the development of 49 residential flats, two ground floor restaurants and basement parking in a seafront location.
“We are delighted with the response we’ve had from investors for these two crowdfunding investment projects,” said Jatin Ondhia, chief executive of Shojin Property Partners.
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“Many investors are disillusioned with traditional buy-to-let investment, thanks to the government’s crackdown.
“We have seen a sharp increase in investors diversifying into property crowdfunding, having previously invested in buy-to-lets, together with cash ISAs.
“Since the launch of our crowdfunding platform, we have seen investors from different walks of life and across a broad age range, investing in our projects, from as little as £5,000.
“We now offer investors the opportunity to invest across the entire property spectrum.”