MONEY&CO is helping to originate a loan for a borrower, which will be run in its own standalone Innovative Finance ISA (IFISA).
Grounds Investments, a UK subsidiary of German property developer The Grounds Real Estate Development AG, is looking to raise funds to back projects in Germany.
Investors are being offered a return of three per cent for two years or seven per cent for five.
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The financing is being arranged by City superwoman Nicola Horlick’s (pictured) Money&Co brand, but Grounds Investments wanted to do its own, separate marketing.
Investors will be putting their money into an IFISA wrapper run by Horlick’s Bramdean Asset Management company.
“Grounds Investments is the borrower and we are originating the loan for them,” Horlick told Peer2Peer Finance News.
“It is exactly the same process for investors as usual, but Grounds Investments wanted to do its own marketing in conjunction with Money&Co.
“All promotions have to be approved by us.”
She said Money&Co has a debenture over Grounds Investments held on behalf of lenders.
In addition, there is a first charge on the underlying property held by a security trustee for the benefit of lenders.