German expansion solves Brexit problem for FutureBricks

FUTUREBRICKS is expanding into Germany, as it seeks to Brexit-proof its future growth plans.

The UK-based peer-to-peer property lender, which launched last year, hopes to have at least one deal in Germany by the third quarter of 2020. All overseas deals will be accessible by UK investors, allowing them to diversify their loan portfolios beyond the UK market.

Read more: P2PFN‘s special report on property

“The German market is very similar to the UK in terms of the lack of funding that is available for property development,” FutureBricks’ founder and managing director Arya Taware told Peer2Peer Finance News. “We are filling a gap in the market there, just as we have been filling a gap in the UK market.

“Our goal has always focused on becoming a global company. We believe in diversification for the business, and global expansion is just one part of it.” FutureBricks has been working with Diaspora, a Berlin-based fund, which has provided equity funding for the platform’s German expansion.

Read more: Gross mortgage lending dips amid Brexit uncertainty

“Diaspora is going to help us launch in Germany by opening up a network and keeping us in the know about the local market,” said Taware. “Berlin has such a flourishing tech scene so it would seem like a natural choice for property platforms to expand in that portion of Europe.”

Over the next five years, Taware said that she wants to expand FutureBricks into the Netherlands and the Nordic countries, building “a quality loanbook” of more  than £100m.

However, the European expansion “really depends on having access to that specific market and what their business plan is – and strategy,” she added. “There’s definitely a chance it can go either way, especially with Brexit looming, so we will see how that pans out.”

Read more: Blend Network chief heralds Brexit opportunities for Northern Ireland