A property investment platform offering investors the opportunity to indirectly invest in prime residential property in the capital with as little as £1,000 has closed its latest fundraising deal in less than a week after raising £1.2m from investors looking for high returns.
The £1.2m investment into CapitalRise, most of which was made using the new CapitalRise Innovative Finance ISA (IFISA), will be used to partially refinance a residential development, Strand Chambers, at 227-228 Strand in London, which is being developed by Seastar Developments.
CapitalRise’s IFISA, which will also be available for future investment deals, provides investors with the opportunity to invest a minimum of £1,000 and up to £20,000 in the 2017-2018 tax year in prime residential property, offering tax-free returns between 10-14% per annum.
CapitalRise expects the next deal to be available for ISA investors during the second quarter of this year, with priority given to investors who register their interest first on the CapitalRise website.
More than £4.2m has now been raised via CapitalRise across four deals with a view to investing in London’s high-end property market.
Uma Rajah, CEO of CapitalRise said: “Investing in prime London residential property is no longer reserved for the very wealthy. Our ISA has given small investors, who perhaps can’t otherwise afford to get on the London property ladder, the chance to earn attractive returns from prime real estate in the capital.
“At £1.2m, this has been the largest fundraise on the CapitalRise platform to date, and it was raised within a week of public launch.
“We’re thrilled to close our latest deal so quickly and to see our new ISA be received so positively by investors looking for a tax-free wrapper and the potential for higher returns.
“Our previous deal for 38 Yeoman’s Row was so popular with investors that the offer closed in just 71 hours. Each of the three previous deals are on track to provide returns of 10% per annum.”