A property finance platform launched by fund manager Alpha Real Capital has opened up to retail investors, promising a “stronger focus on security.”
Fitzrovia Finance entered the market in 2017 solely for institutional investors, but is now offering individuals access to P2P property lending opportunities as well.
Fitzrovia Finance runs what it calls a seven-step risk control process that involves borrower due diligence, first charge security, 1.5x asset cover, a borrower guarantee of up to 25 per cent, as well as an experienced credit committee and active loan management.
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Investors can either select individual property-backed loans they want to invest in through the Fitzrovia Freedom option, or they can use the Fitzrovia Smart option that automatically spreads investments against a pool of loans.
The minimum investment is £1,000 and investors can earn returns of up to 5.5 per cent, with loan durations of 12 to 48 months.
The maximum loan to value is usually limited to 65 per cent.
The firm’s loanbook is currently valued at £108m.
“The launch of Fitzrovia Finance provides further evidence that the online lending arena is entering a new phase, marked by experienced players from established business sectors launching institutional quality platforms to offer the best of the old and the new,” Phillip Rose, chairman of Fitzrovia Finance said.
“Fitzrovia Finance is combining the established group’s lending pedigree with the efficiency, value and open access of its platform to offer investors more choice, better service and a stronger focus on security.”