Crowdstacker sees huge demand for property development loans
Crowdstacker has seen huge demand for its property development loans (PDLs) since their recent launch.
The projects are offered as mezzanine loans and the PDL loans secured against the value of the project as a second charge behind the senior lender.
Since launching its first PDL at the end of the summer, the peer-to-peer lending platform said “take up has been very strong” with all of its investments so far being filled within days of launch.
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“The focus of Crowdstacker from the outset was to provide investment for larger small- and medium-sized enterprises, and in the course of doing these we worked with several property development businesses,” a spokesperson from the platform said.
“We saw how popular these were with our investors and there was demand for more. We created PDLs to be able to offer specific property investments where investors can see all the detail of actually building new homes such as considering why each particular site and location will work for the planned development, and the architectural design choices.
“We wanted the experience for investors to be like being a property developer without having to actually mix any cement or pick up paint brush – it’s something that can be enjoyed from afar from the comfort of their armchairs.”
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The platform said that its PDLs are available to invest in using its Innovative Finance ISA wrapper and these have proved “hugely popular” with its investors so far, with the target amount for each loan reached within just a few days.
“Because of this we anticipate a lot of demand from investors using their ISAs,” the spokesperson said.
“Currently about one in 10 investors in a PDL are using their ISA.”
Crowdstacker has previously offered P2P loans and crowdbonds for a range of businesses such as nightclubs and vehicle leasing, as well as firms providing development finance including Clearwell Capital but since August has been offering PDLs directly through the platform.