By Lisa Walls-Hester on 6th April 2017
CapitalRise has funded its latest property development deal in just under a week, raising £1.2m from investors. The capital will be used to partially refinance its latest residential development, Strand Chambers, at 227-228 Strand in London.
The majority of the investments were made using the new CapitalRise Innovative Finance ISA (IFISA) which launched on 13th March.
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 prime residential property, offering tax-free returns between 10-14 per cent per annum.
While this latest deal is now fully funded, the company said it has a number of exciting deals in the pipeline, some of which are expected to launch in Q2 this year.
More than £4.2m has now been raised via CapitalRise across four deals and the founders of the platform believe it has democratised access to investment opportunities in high-end London properties, including Yeoman’s Row (Knightsbridge), Eaton Square (Belgravia), and Grosvenor Square (Mayfair).
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 is on track to provide returns of 10 per cent per annum.”