CapitalRise has now returned £32m to investors since 2016

Investors in prime UK property lending group CapitalRise have been an average return of 9.5 per cent per annum since the platform launched in 2016.

The figure comes as CEO and co-founder Uma Rajah revealed that to-date CapitalRise has now returned £32m to its investors, with no losses or defaults recorded.

It’s a figure that also implies a sharp increase in CapitalRise’s lending volumes, as was also reported in AltFi’s Alternative Lending State of the Market Report earlier this month, as in January 2019 the total redemptions stood at just £5m.

“We believe this is a testament to our meticulous selection process, stringent due diligence and the fact are investments are structured to withstand significant levels of stress,” said Rajah. 

CapitalRise’slast redemption milestone was £25m in January, with a 9.4 per cent average return.

“All of the development sites we have been funding have remained open and works have continued throughout the lockdown period so we don’t foresee any issues with our current projects.”

The CEO says July 2020 was a record-breaking month for CapitalRise in terms of new lending, with £10m of new loans originated, and the following month of August up a still-impressive 222 per cent year-on-year with £4.1m worth of investments processed.

Last year CapitalRise raised £3.3m in equity funding from Seedrs and Revolt Ventures, and £30m worth of institutional funding for its platform from an undisclosed UK bank.