By AltFi on Wednesday 10 September 2014
One of the more recent entrants into the equity crowdfunding space has come up with a groundbreaking new scheme for investors seeking both a social and financial return.
Property Moose – an equity crowdfunding platform for property investment – is joining forces with Uprise London. The latter is a social enterprise which works with partner organisations to provide housing, training and employment to women that have suffered serious trauma – including victims of domestic abuse and sex trafficking. Up to now, Uprise has financed the provision of these services using social and ethical investment funds – and now its adding Property Moose into the mix. This union opens the doors to a whole host of private investors who will now be able to invest in the scheme for a minimum of £500.
James Cadbury, Co-Founder and Director of Property Moose, commented on the partnership:
“We’re always looking for opportunities to invest and grow, but also to give something back to society.
“This partnership with Uprise London brings important social benefits as well as being a solid long-term investment.”
Clearly this is a fantastic initiative from a social standpoint – but how about from a purely financial perspective? Uprise will use rental and property management income to pay its investors a fixed rate of 6% return. Those investors also get a 70% share of the capital growth once the property is sold after 5 years. The spare 30% capital growth will be reinvested by Uprise London into social action and community development programs. This appears to be an attractive proposition on two fronts – as an investment opportunity, and as a tool for assisting those in dire need.
Paul Gutteridge, Director of Uprise, summarized:
“This is a powerful model to transform communities through social action and nurture the innate resilience and capacity of these women. Committing part of their investment portfolio to a scheme like this is a safe way for investors to make real difference to individuals and communities while delivering a solid return.”