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Investment firm launches property IFISA
London-based Cogress said its bond has a minimum investment of £5,000 and will offer fixed annual interest rates of 5 between 7.5 per cent.
Property investment firm Cogress has launched its first Innovative Finance ISA bond to retail investors.
The bond has a minimum investment of £5,000 and will offer fixed interest rates of 5 to 7.5 per cent a year across three bond series, with returns varying depending on the investment term.
The London-based firm said it expects the majority of interest in the bond to come from Innovative Finance ISA investors, who will be eligible to invest using the products tax-free wrapper.
Cogress said it would use property developer Nicole Bremner to work as an independent director to oversee its Innovative Finance ISA bonds.
‘Investment opportunities’
Bremner said: “I’m proud to be part of the team charged with bringing these investment opportunities to UK investors and increasing the funds available to deploy to small and medium-sized enterprise developers.
Cogress, founded in 2014, has amassed 7,500 registered investors, who have committed £175m to a portfolio of 55 UK property development projects with a combined value of £1.15bn.
In February, London-based investment platform Property Partner launched an Innovative Finance ISA product, allowing investors to place up to £20,000 a year into the product, which can then be used to back property development projects.
The then Chancellor George Osborne first announced the introduction of Innovative Finance ISA in 2015, which went on sale to the public a year later.
After a slow start, in the 2016/17 tax year, just 5,000 customers opened Innovative Finance ISAs with a total of £36m subscriptions, according to HMRC data. However, in the following 2017/18 tax year, this jumped to 31,000 customers investing £290m in this product.
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