Property Partner sells first two buildings bucking London’s gloomy market

The four-year-old platform hailed a “landmark moment” for its investors.

Lending platform Property Partner made healthy profits on the first two properties it sold since it was founded four years ago, defying the capital’s weak market.

Chief executive Marshall King said the sales were a “landmark moment” for the firm, which has around 900 properties under management in the UK valued at £123m.

The business said it sold a one-bedroom flat in Ilford, east London, for £235,000 late last year, after originally buying it for £165,000 in March 2015. It added investors who bought shares in the property when it first launched on the platform in have realised a net total return of 43 per cent, consisting of the increased value of the property and the monthly rental income over for the duration of the investment.

The second building sold was a two-bedroom terrace house in Greenwich, south east London, for £326,000, after it was bought by the platform for £260,000 in 2015, realising a 25 per cent return for early-stage investors.

King said: “This is a landmark moment for Property Partner and vindicates our early property acquisition strategy, even in the face of challenging conditions in the London market. We're really proud to have delivered double digit annual returns for our investors.”

He added that the platform is “focused on higher yield residential and student blocks outside London and, as we move into 2019”.

The returns contrast with a national picture of slowing house prices. Earlier this month, Britain’s biggest building society Nationwide said house prices grew at their weakest pace since February 2013, rising by just 0.5 per cent in December compared to a year ago, hit by Brexit fears and weaker consumer confidence. However, in London, prices fell by 0.8 per cent over the same period.

Property Partner, founded in January 2015, focuses on residential, commercial and student building across the UK, and has amassed just under 13,000 investors.