CapitalStackers has reached the £100m investment milestone after relaunching its website and raising £1m for a 66-apartment scheme in Rawdon House, Leeds.
The deal was also financed by 10 new CapitalStackers investors and a new senior lender in OakNorth Bank. The £1m was raised in less than 50 minutes.
Since its launch six years ago, the peer-to-peer property lending platform has repaid over £12m to investors at an average return of 12.15 per cent and nearly £28m has been repaid to banks, with no losses. The remaining £60m is still being put to work in construction projects in the UK.
CapitalStackers has successfully auctioned seven deals since the first lockdown last year, raising £6,470,000 in mezzanine funding.
Over the last year the platform has attracted new senior lenders such as Shawbrook Bank, Hampshire Trust Bank and United Trust Bank and new borrowers including Empire Property Group and Torsion Group.
“On the launch of CapitalStackers’ new platform, with 97 active investors and over 300 waiting in the wings, it’s worth reflecting that none of this success is by accident,” a spokesperson from CapitalStackers said.
“The zero loss record – even throughout the worst crisis since WW2 – is a living reflection of the core directors’ experience as property lenders with top banking pedigrees.
“The key principle of never allowing a trowel to be lifted or a penny to be drawn down until all the funding is in place has now been proven in battle – when many competitors fell by the wayside because they were unable to find fresh investment to keep going in times of crisis.
“CapitalStackers projects simply continued – with admittedly, but understandably, the odd delay (and sometimes a serious hiccup) due to the pandemic, but never a pause for lack of funding.”
Read more: Real estate lenders expect post-Covid growth