By Roger Baird on Thursday 16 May 2019
The online secured property lender says it rejects up to 90 per cent of loan requests and has not experienced any defaults to date.
Online property lending platform Fitzrovia Finance has opened its £100m fund to retail investors.
The firm, which launched two years ago to institutions, said this week it will now seek private investments, starting at £1,000, and promising returns of up to 5.5 per cent.
The secured property lender says it employs “a long-established team of secured lending industry experts” who select projects and typically insist on more than 150 per cent asset cover. It rejects between 80 per cent and 90 per cent of loan requests, and has not experienced any defaults to date.
The fintech was launched in 2017 by London-based property group Alpha Real Capital, which has £3bn of assets under management and employs more than 100 professionals.
Fitzrovia Finance competes with high street banks and other financial services operations, to lend money to property firms who want to borrow between £1m and £15m. Its loans last between 12 to 48 months, with the maximum loan to value usually limited to 65 per cent or less of development value.
The platform’s chairman Phillip Rose said: “The launch of Fitzrovia Finance provides further evidence that the online lending arena is entering a new phase, marked by experienced players from established business sectors launching institutional quality platforms to offer the best of the old and the new.”