CapitalRise passes £25m redemption milestone with a 9.4% average return

By Oliver Smith on Friday 31 January 2020

Alternative Lending

Strong returns from prime property developments in London and the home counties.

CapitalRise passes £25m redemption milestone with a 9.4% average return
Image source: CapitalRise/Uma Rajah.

Property platform CapitalRise has returned £27m to its investors since launching in 2016, the startup revealed yesterday, achieving an average return of 9.4 per cent.

CEO and Co-Founder Uma Rajah said £20m of the cash had been returned in just the 12 months alone.

Two loans, in particular, were responsible for the huge growth in returns last year, one loan for £6.9m to fund a renovation of a Holland Park property and another for a Chelsea development.

Rajah said reaching the milestone: “reinforces the confidence we have in our proposition and highlights the strength of our credit underwriting process.” 

CapitalRise has now lent against £330m of property for development, redevelopment and renovation in prime locations including Belgravia, Chelsea, Knightsbridge, Mayfair, Oxford and Wimbledon.

“Whilst the prime property market has been under pressure since 2014, causing other lenders to retreat or fully withdraw from the market, we have maintained our meticulous selection process and remained confident in our approach to financing developments we truly believe in,” added Rajah.

Last year CapitalRise hit several funding milestones including a £2.27m equity crowdfunding round, an additional £1m raised in venture funding, and £30m in institutional funding from an unnamed bank to extend further credit to property developers.

UPDATE 03-02-2020 - An earlier version of this article incorrectly said CapitalRise had leant £330m, whereas the company has actually facilitated loans against £330m of property.

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