The fundraiser was driven by investments through the Innovative Finance Individual Savings Account.
Crowdfunding platform CapitalRise completed one of its largest fundraisers to date, at £1.35m.
The development, called Woodhill, is for luxury homes in Hampshire. The property will over two three-bedroom and ten four-bedroom homes and is expected to be complete by the end of 2018.
CapitalRise recently launched an IF ISA that allows users to invest and potentially earn a 10 per cent return per year, tax free. Around 64 per cent of the firm’s customers have opened an ISA account.
"Investing in fine real estate has so far only been available to the wealthy and institutions with millions to invest,” said Uma Rajah, CEO of CapitalRise. “CapitalRise changes this by allowing anyone to invest in these attractive luxury properties from as little as £1000, and opening up the higher returns that are available.”
The investment was structured so that property prices would have to fall by more than 34 per cent for funds to be at risk, which the platform says gives investors a “generous safety margin.”
The builder, Alfred Homes, has sold 66 homes to date, for a total value of £69m.