UK property finance platform CapitalRise has funded its biggest crowdfunding raise. Investors of the platform have reserved £6.4 million in finance for the development of a grade two residential property in Belgravia, London.
Grade two listed buildings have guidelines in place that safeguard architectural and historical importance. Written consent from relevant authorities is required before altering this grade of building because they are of special interest.
Uma Rajah, chief executive of CapitalRise, explains: “Wilton Place is an example of an exciting opportunity for our investors to invest in a prime central London property, and in an area of the property market that was previously only accessible to ultra-high net worth and institutional investors with millions to invest.”
What does this CapitalRise investment show us about the current investment market?
After only one hour of the formal launch, the residential townhouse located on Wilton Place in London was quickly reserved.
Rajah continues: “The prime central London property market has proven especially resilient over the past 12 months and latest figures show this area of the market grew by 0.5% in the three months up to June 2021, the largest quarterly rise since August 2015. We believe this is coherent with the surge in investor demand that we have seen on our platform for good quality investments secured against some of the finest properties across London and the South East. With more prime central London opportunities in the pipeline, I anticipate more investors exploring this resilient asset class.”
Property developers based in London and the South East can borrow £1 million to £20 million finance from the finance platform. Mayfair, Belgravia, Knightsbridge, Kensington, Chelsea, and Notting Hill are among the primary locations CapitalRise offers services to.
The focus on London locations demonstrates the demand that the capital still has and suggests investors consider asset class investments in this location a safe haven. The fact that CapitalRise has had zero investment losses further backs these strengths up.
According to CapitalRise, the latest deal demonstrates the high demand from investors for investment opportunities in prime London real estate debt. Since reopening last year in May in England, the housing market has seen huge growth.
Lyndon Miles, lending director at CapitalRise, adds: “CapitalRise’s loan is assisting to fund the acquisition of the freehold of the property, which is unusual in this location. The borrower has existing planning approval to improve the property and increase its value by over 60% according to the valuation report provided by Savills. It will seek enhanced planning approval to further increase value during the term of CapitalRise’s loan – no doubt making it an attractive opportunity to investors”
Regardless of the trials and tribulations the Covid-19 pandemic has created in many industries, over the past year the central London property market has been resilient. This sector of the property market grew by 0.5% in the three months to June 2021, which marks the largest quarterly rise since August 2015.
The future could be promising for London prime property investments. Particularly with England’s recent celebration of Freedom Day, where Boris Johnson put an end to Covid-19 restrictions on July 19 2021, it seems likely that more regular travel could return soon and allow international buyers to also invest in this market with more ease once again.