Property crowdfunding platform Property Partner has received a huge cash injection to support its plan for affordable property.
Global investment group Index Ventures has invested £5.2 million in the hope that the money will allow Property Partner to build an infrastructure to make buying property a lot easier for house hunters.
As well as the investment, Neil Rimmer from Index Ventures will also take up a seat on the board of Property Partner and had his say on the investment:
“A reinvention of residential property as an asset class is currently underway. It is being democratised and opened up to a far broader range of people, who can now invest without the hassle and liquidity problems that have traditionally plagued direct investment in property.”
“In Property Partner, we believe we are backing an exceptional team with the skills to spearhead the growth of this exciting new sector and take property crowdfunding into the mainstream, across the globe.”
How does Property Partner work?
Property Partner advertises, lets and manages each property.
Commenting on the agreement, Daniel Gandesha, CEO of Property Partner, believes that Index’s investment proves the increasing trust in crowdfunding as a viable way to make residential property more affordable. He said:
“Index are a great investor to have on board, with really deep experience in both fintech and cross-border growth. I can’t imagine anyone better placed to help us deliver our long-term vision for Property Partner - as a global stock exchange for residential property.
“We are convinced that this model for property investing is a highly attractive alternative to buying properties directly. We also believe strongly in providing tenants with a more professional service, because tenants who are treated well and fairly are more likely to stay longer.
“The UK government's housing objectives are being delivered through initiatives including shared ownership and build to rent. Both of these play to our strengths and could be offered on our platform in the future. We want to be the property investment method of choice for the UK and beyond.”
Since launching earlier this year Property Partner has seen more than 1,000 people investing from £50 - £50,000 in homes on their platform with the average investment size rising continually since launch.
Property Partner currently only lists properties in London and the south-east of England.
Join AltFi for its third annual Alternative Income Forum, exploring closed-ended funds (investment trusts) specialising in generating an income using alternative assets such as specialist finance, P2P lending, direct lending, asset leasing and more. Hear from the leading investors and fund managers in this rapidly growing market.