CapitalStackers has completed the drawdown of £1.36 million funding for a prestigious development of eight homes, in the pretty Cheshire village of Malpas. Work is expected to start on site later this month and two properties are already under offer at the asking price.

The P2P property lending specialist also successfully negotiated £1.58 million of senior funding from a major high street bank, on behalf of the developer Orchard House. The gross development value of the scheme is £5.1 million.

CapitalStackers’ investors now look forward to returns of between 10.7% and 15.6% per annum over the next 22 months with lending at Loan to Value ratios from 55% to 73%.

Steve Robson of CapitalStackers comments, “Investors were invited, at the back end of last year, to lend into three layers and choose their own level of risk and return. Many are repeat investors, some of whom benefited from returns of up to 22.5% last year on an office to residential conversion we financed in York, however some are new investors, keen to dip their toe into the P2P property lending market.

“They are attracted not only by the high level of returns available, but the transparency and ease of the deals. We now have 150 investors on the books and rising, plus an exciting development pipeline. There are opportunities still available in the Malpas deal through our secondary market.”

Patrick Lomax, Founder and Director of Orchard House comments, “I have been impressed with CapitalStackers detailed knowledge of the property industry and finance market. We dealt with an experienced and senior team who absolutely delivered to the brief and exceeded our expectations. They have access to a wide pool of potential investors and delivered within relatively tight timeframes. We spoke to a number of debt advisors but none came close to the same level of service and professionalism.”

The Orchard House development is only a short walk from the 18th century market town of Malpas, Cheshire – a friendly village community within commuting distance of Chester and Wrexham and close to the Ofsted outstanding Bishop Heber High School.

A number of listed buildings dotted around the immediate area (including the Grade 1 Church of Saint Oswald), lend the site a rare traditional charm. And since the developer has in-house design capability, each of the homes can be partially bespoke to the purchaser’s requirements, which has sparked early interest from buyers with plots already being reserved off-plan.

CapitalStackers investment opportunities appeal to a broad spectrum of investors, from conservatively positioned pension funds to those with a higher risk-and-reward appetite. The minimum investment is £5,000.

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CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.

The Oakapple Group – a Leeds development company – has begun converting the former 4 star Balmoral Hotel in Harrogate into 14 luxury apartments, with the help of funding raised by P2P lending platform CapitalStackers.

The 1image-living-space2,500 sq ft landmark Victorian building on Franklin Mount is being sensitively converted into one and two bedroom elegant apartments ranging from 600 to 1300 sq ft. Completion is scheduled for September 2017 and residents will enjoy on-site parking and original architectural features. The property was built around 1890 as three Victorian villas, converted into a guest house in 1981 and became the Balmoral Hotel in 1984. Oakapple received planning consent in June 2016.

For the developer, the funding solution allowed more effective use of equity. CapitalStackers introduced the senior debt from Hampshire Trust Bank of circa £2.3m and raised the additional £515,000 required within a week of posting the deal. The developer anticipates selling for in excess of £4m.

image-bathroomSteve Robson of CapitalStackers comments, “We are delighted to be playing a significant role in the sensitive conversion of such an imposing and historical building within the centre of Harrogate. Investors will look forward to receiving returns pegged at between 11% to 15.5% per annum within the next 14 months”.

CapitalStackers matches investors direct with developers seeking finance on specific projects. The company aims to plug the funding gap between typical bank debt and the developer’s equity. Investors typically receive double digit returns up to 20%.

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CapitalStackers is authorised and regulated by the FCA. Investment through CapitalStackers involves lending to property developers and investors. Your capital is at risk. Investments through this and other peer to peer lending platforms are not covered by the Financial Services Compensation Scheme. Unless otherwise stated, returns quoted are annualised and gross of tax.