Specialist property finance service provider CrowdProperty has launched a peer-to-peer lending facility aimed at matching up investors, including SMSF members, with developers of high-quality, small-to-medium residential properties.
The offering will typically involve short-term funding for property developers secured by first mortgages to be paid back in 12 to 18 months with a goal of generating a target return of 7 per cent for investors.
CrowdProperty Australia co-founder and chief executive David Ingram said the platform provides Australian investors with a significant opportunity given the nation’s projected population growth potentially triggering the need to build over 32,000 houses a year over the coming two decades.
“Our solution matches investor capital more directly to the developer using it to add value, enabling greater returns, meeting the major needs of both sides of the marketplace,” Ingram said.
“We reduce the risk for our investors by reviewing and selecting only the best project loans, funding quality, small-to-medium-sized residential developments between $250,000 and $6 million with first mortgage security.”
The launch of CrowdProperty’s peer-to-peer loan platform in Australia comes after the success it has enjoyed in the United Kingdom market since 2013.
“Since launching in the UK, we’ve lent over A$200 million to property developers, funded the construction of over 1150 homes worth over A$400 million and delivered a 100 per cent capital and interest payback to investors through over six years of lending,” CrowdProperty UK chief executive Mike Bristow said.
“CrowdProperty UK is the UK’s leading specialist property project online lending platform and we see even greater potential here in Australia.”
CrowdProperty Australia has launched with a local development project consisting of two premium co-living boarding houses in the Melbourne suburb of Glenroy, with the project already fully funded.
It is planning to raise a further seed round of funds in the third quarter of 2021.
