Residential property crowdfunding platform Property Partner has listed 42 flats for sale, its first ‘higher-yielding’ block investment opportunity to date.
The block of flats, located in a historic, converted mill in Gainsborough, Lincolnshire, were listed for sale at a discount of 7% at £1.8m, a discount which will be passed straight on to its investors, providing them with considerable capital uplift.
Property Partner, a platform which has already crowdfunded more than £12m worth of residential property so far, has claimed that the rent for all 42 properties will total £190,000 a year. Out of these 42 properties, 35 are already tenanted and so already generating income, whilst the remaining seven are still up for sale. The crowdfunding platform has predicted that the propertied will provide a net income of around 5.89%.
All 42 properties will be 40% crowdfunded, so the platform's target is just over £843,000. The rest of the money for the block of apartments will be mortgaged on an interest-only basis at a 60% loan-to-value (LTV).
Dan Gandesha, CEO of Property Partner, commented: “This purchase of a block of 42 flats sums up our future ambitions. Normally, only institutions, private equity houses and hedge funds would stand a chance of investing in a bulk-buy like this and building up a sizeable property portfolio.”
“Now anyone can invest in blocks of properties for as little or as much as they like. This is bringing power and choice to smaller investors. And this particular opportunity offers an attractive net yield and immediate capital uplift for investors,” he added.