Property peer-to-peer lending platform Fitzrovia Finance is closing down, following a decision by parent company Alpha Real Capital to exit the P2P market.
The decision was made “in the context of the current health crisis,” a spokesperson told Peer2Peer Finance News.
Alpha will continue its lending activity as before, through the property lending team which had previously managed the Fitzrovia portfolio.
Fitzrovia Finance was founded in 2014, and launched to private investors in May 2019. It has facilitated more than £150m in secured property lending, and all retail investors’ capital and interest earned to date has been repaid in full at an average return of 5.5 per cent, with asset coverage 1.5 times the value of loans.
Last year, Fitzrovia launched its first Innovative Finance ISA (IFISA) product via the Goji platform.
“The board’s decision to close the service was due to a number of challenging economic circumstances, exacerbated by the current pandemic and other factors impacting the commercial environment for P2P lending over the medium term,” said a spokesperson for the platform.
“Fitzrovia Finance is working with its advisors to conclude all corporate matters related to the wind-down in an orderly manner within a reasonable timescale, having notified the Financial Conduct Authority and its clients of its intention to close.”