Cogress diversifies to offset Brexit jitters
PROPERTY investment platform Cogress has shifted its focus from development lending to a variety of different partnerships and geographies to cater for Brexit uncertainty among investors.
Tal Orly, chief executive of Cogress, said the platform is now focusing on bigger margins, less risk and more experienced partners. He said of five to 10 deals with UK borrowers, only one may pass the necessary lending requirements.
The platform, which offers Innovative Finance (IFISA)-eligible bond investments, has recently launched a partnership with Latin hospitality chain Selina, which specialises in purchasing and renovating hotels. The partnership will see £80m of funding going toward Selina projects and a new dedicated IFISA-eligible bond launched this month.
One portfolio of hotels in Portugal and the UK raised £5.8m last month. “Brexit is something is something we have been talking about for three years,” Orly said. “We are looking at different kinds of investment that represent lower risk and exposure, sometimes out of the UK.
“We are reducing the amount of deals and going to a bigger and stronger partner to allow some investor money to come out of the UK. “Investors can get income through this partnership rather than just relying on capital growth as you need to with development.”
Read more: Cogress to prepare its IFISA for mini-bond marketing restrictions
Cogress launched in 2014 and provides a mix of debt and equity property development investment opportunities to high-net-worth and self-certified sophisticated investors. It is regulated as an alternative fund manager rather than a peer-to-peer lender, which means its investors are already used to appropriateness tests and marketing restrictions, which the wider sector must follow from this month.
