The fourth project from CapitalRise, the luxury property crowdfunding platform launched by Finchatton’s founders, is its biggest yet: the team is looking to raise £1.2m to help fund a high-spec nine-unit office-to-resi development opposite the Royal Courts of Justice on the Strand.
Works on Strand Chambers (227-228 Strand) are already underway; the building has been stripped back to its shell and will be fitted out over the next 18 months. Once completed, CapitalRise expects apartments to achieve an average of £2,100 per square foot.
Seastar Developments is delivering the project (via its development company 227-228 Strand Limited); the firm was founded in 2010 and has good form in the area, having completed the nearby 353 The Strand in 2014 (which won the Evening Standard’s “2014: New Homes Award- Best Conversion”), as well as a very fine seven-unit scheme at 22 Buckingham Gate near Buckingham Palace, and a little project on Pond Place in Chelsea.
This crowdfunding launch follows three overwhelmingly popular prime resi projects on CapitalRise (Yeoman’s Row, Eaton Square and Grosvenor Square), which each raised £1m from an array of everyday punters putting in anything from just £1,000. Yeoman’s Row in Knightsbridge – the most recent project – hit its target in just 71 hours.
As well as being the biggest fundraise, Strand Chambers is also the platform’s longest-term (two years), and offers the highest potential returns (10-14%pa). It’s being structured as an “innovative finance ISA” (IFISA) – a format usually reserved for institutional-grade investments. CapitalRise is claiming it as “the first Innovative Finance ISA (IFISA) wrapper for prime residential property”. The format caps investments at £15,240 in the current tax year (rising to £20,000 in the 2017-2018 tax year), but aims to deliver tax-free returns between 10-14% per annum.
Strand Chambers is due to go live on CapitalRise on Monday 20th March.
Uma Rajah, CEO of CapitalRise: “Our prime real estate IFISA provides savers with an opportunity to access an historically top performing asset class – prime residential property – held in a tax-free wrapper.
“In the current low interest rate environment and with inflation predicted to rise significantly in the short term, we believe this will prove very attractive to UK investors and the hundreds of customers who’ve already registered with us.”