PROPERTY investment firm Cogress has launched an Innovative Finance ISA (IFISA), offering returns of up to 7.5 per cent.
The firm is launching three IFISA-eligible bonds, which are invested into property development projects across the UK. The bonds have a minimum investment of £5,000 and offer rates of between five per cent and 7.5 per cent, depending on the investment term.
IFISAs have grown quickly since their launch in April 2016, with inflows said to be £746m as of May this year.
“The last twelve months have seen the IFISA cementing its position as a credible challenger to orthodox investment wrappers; it is estimated that retail investors now directly hold more loans in ISAs than they hold in government gilts,” said Jake Wombwell-Povey, chief executive and founder of IFISA technology provider Goji.
“But the real variety and opportunity for investors comes from the property space. Cogress’s IFISA gives investors a choice of products and the opportunity to play a meaningful role in growing housing stock in the UK by increasing the funds available to deploy to developers.”
Cogress has hired property and financial services expert Nicole Bremner to work as an independent director overseeing its IFISA-eligible bonds offering.
Commenting on the growth of the IFISA into a £1bn product, Bremner said that Cogress’ latest offering would increase funding available to developers.
“Cogress is known for its rigorous due diligence on deals and commitment to both investors and development partners,” she said. “I’m proud to be part of the team charged with bringing these investment opportunities to UK investors, and increasing the funds available to deploy to small and medium enterprise developers.”
Cogress was founded by chief executive Tal Orly in 2014 and has grown to have 7,500 registered investors, who between them have committed £175m to a portfolio of 55 UK-based property development projects with a combined total value of £1.15bn.