Proptech start up Property Partner reaches £100m AUM

By Emily Nicolle on 8th December 2017

Equity CrowdfundingProperty

The property crowdfunding platform has seen significant growth in the sector.

Proptech start up Property Partner reaches £100m AUM

Since launching the platform in 2015, Property Partner has seen fourfold growth. In December 2015, the company had £21.9m assets under management.

Property Partner gives users the opportunity to invest in property without having to buy, own and manage real estate. Users can choose what properties to invest in, choose how much to invest, and then earn rental income off their shares.

Property Partner has also enjoyed consistent growth in 2017, growing 36 per cent month on month for the past four months, and almost doubling its AUM since this time last year (at £57.8m).

Over 10,000 investors have collectively purchased nearly 700 properties across the UK on the platform, achieving current estimated total annualised returns of 7.7 per cent.

These latest positive results are attributed in part to the company’s Purpose Built Student Accommodation (PBSA) offer which launched in August, in a first time access to the asset class for non-institutional investors.

This was in addition to a new business strategy for the platform, which now focuses its marketing efforts on targeting high-value investors for stakes above £25,000.

“Confidence in the business is growing, and while we will always remain a product for everyone, it is not uncommon for investors to be depositing six or seven-figure sums, which is driving our growth,” said Daniel Gandesha, CEO and Founder of Property Partner.

“The addition of PBSA, a strong performing property asset, has been incremental to this, as we open up access to this investment, making it easy to invest for the first time. We look forward to bringing our investors even more exciting opportunities in the new year.”

Comments

AltFi News

11 Dec 2017 06:15pm

Hi Steve! We contacted Property Partner on your behalf to find out an answer to your question. Here's their response: “The figures you are likely to have looked at are the ‘valuation’ of the properties. This reflects how much the shares in the property are worth, not the overall value of the property. The overall value of the property also includes the mortgage that Property Partner has against the property. Having a mortgage against an investment property is known as ‘gearing’, and is a method that can enhance returns. Many of Property Partner’s properties are geared at 50% which means the full value of the asset is double that of the valuation.” If you have any more queries, feel free to contact them at hello@propertypartner.co

steveh

11 Dec 2017 03:23pm

Their website tells us they have 98 properties financed, so that should indicate an average value of £1M. I haven't found a convenient way to calculate it, but the average value seems to be under half that. Are you sure about £100M aum?