Leading real estate equity crowdfunder Property Partner has closed a £12.9m Series B investment round.
The fundraise was led by Octopus Ventures, with participation also coming from Index Ventures and Dawn Capital. The £12.9m in equity money arrives alongside a £3m venture debt facility, which has been provided by Silicon Valley Bank. Property Partner last raised money in April 2015 – a £5.2m round led by Index Ventures.
The fresh funds will be used to expand “across the board”. The platform is planning to build its customer base by developing new segments, which will include institutional investors. A number of new products are said to be in the pipeline, including a shared ownership product. Property Partner will also be actively hiring, with a view to achieving rapid expansion both in the UK and “beyond”.
Property Partner is leading the way in the UK’s still nascent real estate crowdfunding space. The platform – which launched as recently as January 2015 – has seen 6,200 customers invest more than £24m to date, spread across 166 properties. That £24m includes close to £5m in secondary market investments – a testament to the dynamism of its aftermarket. The platform’s investors receive a steady flow of rental income whilst also standing to gain from capital appreciation over time. The platform advertises an estimated return of 13% per annum after fees. We examined the investment proposition at length in January.
"This significant investment is a huge vote of confidence in our business model, and our vision for making the property market better for everyone. These funds will help propel us towards our ultimate goal - that of being a global stock exchange for property.”
The real estate equity crowdfunding space – which allows investors to buy in and out of property ownership cheaply and seamlessly – has clear allure. But the sector has somewhat struggled to build momentum thus far – with some operators going so far as to pivot into the facilitation of debt-based investment opportunities. Property Partner is bucking that trend. With an extra £15.9m in debt and equity firepower, we’re excited to see what’s next for the platform.
AltFi is returning to Amsterdam for its second annual Summit in the city. The inaugural event last year was a roaring success, with key figures from across Continental Europe's alternative finance and digital banking sectors highlighted. These included Jeroen Broekema, managing director of Funding Circle Netherlands, and Mieke van Engelen, head of innovative partnerships at ABN AMRO's standalone lending platform, New10.