High-end property crowdfunding platform CapitalRise has just opened up its fifth and biggest fundraise yet – and its first outside of London.
UPDATE, 21st July 2017: The project was full-funded after three weeks
The firm is looking to generate a £1.35m contribution to a 12-unit commuter-belt development in Hampshire by local specialists Alfred Homes Ltd.
The scheme, called Woodhill, is located in Chandler’s Ford, a little town seven miles south of Winchester. It’s been designed in a traditional/contemporary fusion fashion by architect Andrew Smith, and will deliver 12 detached and semi-detached houses (two three-beds and ten four-beds) on a short private road. These are estimated to go for an average of £408 per square foot (£715,000- £900,000 per house).
Alfred Homes has delivered around 66 homes in the last eight years, with a total value of over £69m. The firm bagged enhanced planning for this latest scheme in June 2017, and hopes to get works started this month (July 2017). Construction costs are being covered by a loan from a high street bank; the crowdfunding element is to help out with the purchase of the land – and CapitalRise is offering 10.5% annual returns over a 24-month investment period.
Uma Rajah, CEO of CapitalRise: “The residential real estate market offers opportunities for shrewd investors across the country and not just in London. We are thrilled to be offering a prime development in Hampshire to everyday investors wanting to invest via the CapitalRise platform.
“We’ve raised more than £4.2m to date and expect the next deal to close quickly, particularly with the opportunity to generate tax-free returns via our Innovative Finance ISA, and to transfer in ISAs from other providers, which customers have told us they really want.”