Property investment platform CapitalRise has closed its latest fundraising deal in just over one week, raising over £900,000 in the first day of the campaign.
The company, who offer opportunities to invest in high-end London properties including those in Knightsbridge and Belgravia, raised £1.2 million from everyday investors via the platform in its latest campaign. The majority of the investments were made usng CapitalRise’s Innovative Finance ISA, which launched last month.
The £1.2 million is being used to partially refinance a residential development, Strand Chambers, at 227-228 Strand in London.
The company offers the chance to invest in a slice of high-end property, that would otherwise be out of reach for the average investor. For example, the first property offered on the site was a three bedroom flat in London’s exclusive Eaton Square, which was bought for £5.1million. After renovation the property is likely to sell for around £8.1million, giving investors a solid return.
CapitalRise is one of several platforms granted permission to offer an IFISA, providing investors the opportunity to invest a minimum of £1,000 and up to £20,000 in the 2017-2018 tax year in prime residential property with tax-free returns of between 10-14 percent per annum.
CapitalRise expects the next deal to be available for ISA investors during Q2 this year. Priority will be given to investors who register their interest first on the CapitalRise website.
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 £1.2 million, 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.
The speed in which CapitalRise raised the funds is just another example of UK investors’ insatiable appetite for crowdfunding investments. According to a study by Nesta and Cambridge University, the UK Alternative Finance sector now does £3.2 billion worth of loans, investments and donations a year, up 84 percent compared to 2014.