Crowdfunding platform PropertyPartner has announced it has purchased property in growth hotspot Hastings from a local developer.
In an attempt to get Britain building, the residential property crowdfunding platform has bought four new-build freehold houses in Hastings from developer Nexus Build, which are now available for investment.
The purchase of these properties, the first for PropertyPartner outside of London, cost £261,000 each, providing investors with a capital uplift of 11% versus the independent RICS valuation of £290,000, a discount which will be passed straight to investors.
Through purchasing the properties, the crowdfunding platform has enabled the developers to pay off loans and contractors and move on to the next project, helping to solve one of the biggest challenges in the UK property industry – a severe lack of supply.
With this scheme, investors will receive an 11% discount on the properties and will benefit from a five year fixed mortgage rate.
Dan Gandesha, CEO of PropertyPartner, commented: “While the Hastings properties offer a good net yield and immediate capital uplift for investors, they also serve as a template of how we, as a crowdfunding platform, believe we can inject liquidity into the market and get Britain building.”
The scheme also includes a five year exit option, where each investor will be able to sell their share at market value.
“For smaller developers like us, cash flow is paramount and determines the speed with which we can build properties and move from one project to the next. By buying the four remaining units on this project, Property Partner has given us a platform to build more homes much more quickly than usual,” Stephen Finch, Director of Nexus Build, added.