Affordable housing developer latest to turn to crowdfunding
09 March 2015
A firm which sells affordable homes for Londoners has announced the details of its crowdfunding bond.
Pocket is the first company to launch a property mini-bond on crowdfunding platform Crowdcube.
The firm is aiming to raise £1.5m and will provide investors with an opportunity to invest in the affordable housing market.
Pocket says it plans to build more than 4,000 starter homes across London within the next 10 years, thanks to a £21.7m loan from the Mayor of London, Boris Johnson, and the support of Lloyds Banking Group.
Pocket Co-founder and CEO Marc Vlessing said: “Last year was a great year for Pocket, we are rapidly expanding to meet a strong demand for affordable housing among London’s city makers. This Bond is an exciting opportunity to support an alternative to London’s middle-market housing crisis and invest in a scheme that offers a return on your capital.”
Founded by Vlessing and Paul Harbard, Pocket aims to redefine the affordable housing model, creating homes for people who work in the capital but are caught between social housing and the private sector.
For example, one bedroom properties are sold outright to buyers – singles or couples with a current average household income of £40,000 – at a discount to local market prices of at least 20%.
According to Pocket, these homes then make a lasting addition to London’s affordable housing stock as the next buyer must also meet the same income eligibility criteria.
Co-founder of Crowdcube, Luke Lang, added: “The mini-bond revolution continues to disrupt the investment market and we’re excited to add a property developer that is so innovative, providing well-designed, affordable local housing for people who work in London.”