This week we gave our investors a serious cause to celebrate when our residential development in York was completed two months ahead of schedule. Which means the shrewdness of all sixteen P2P investors paid off as they got their investment back within just 8 months and received returns of up to 22.5% per annum.
All the apartments at Foss Place, Foss Island Road in York had already been pre-sold during construction by developer Norstar Limited and the majority of investors, who lent between £5,000 and £1.73 million to the project, have re-invested into another CapitalStackers funded scheme, a residential conversion in the centre of Harrogate.
CapitalStackers’ offering is becoming increasingly popular with astute P2P investors – the entire funding for Foss Place was completed in just 14 days from CapitalStackers’ engagement to the full loan being drawn down. The company now has in excess of 100 investors on its books and rising – and it’s easy to see why.
The idea is to plug the funding gap between typical bank debt and the developer’s equity – and it’s a win-win deal. Developers get access to the funding that dried up since the banks retrenched and it’s a great way for a wide range of investors to get involved with bigger commercial building projects, from housing to offices – schemes that would otherwise be out of the smaller investor’s reach (except through REITs or unit trusts, which would not allow them the same control over their investment).
CapitalStackers not only gives investors the choice of the development project they help fund but also lets them choose the risk level and associated return. Total financial transparency is maintained and typical returns are between 5% and 20% per annum paid out on completion of the project – usually around 12-24 months later. The minimum lend is just £5,000, and all loans are fully secured on the property being funded, with the extra benefit of high quality due diligence.
The Foss Place project is just another great example of the idea in action. CapitalStackers raised £2.25m loan monies to help Norstar Limited purchase and convert a disused office building into 6 studio and 18 one-bed apartments, with a predicted gross development value of £3.2 million and peak loan to value ratio of 76% including interest. On completion, the development sold out for £3.4m equating to an improved loan-to-value ratio of 71%. The apartments were priced between £99,000 and £120,000.
Steve Robson of CapitalStackers comments, “We’re delighted to give our investors annualised returns of between 8.5% and 22.5% in just eight months, two months ahead of schedule. We arranged three layers of finance to Norstar: Layer 1 being £1.75m of senior debt; Layer 2 provided £350,000; and Layer 3 a further £150,000, at returns of 8.5%, 15% and 22.5% per annum respectively”.
So for any investors looking for a more appealing investment opportunity, CapitalStackers has surely come of age. There are a number of exciting projects in the pipeline with similar attractive risk and reward profiles. The minimum investment is £5,000 and there’s no upper limit. So why not register now and give your funds a boost over the next 12-24 months?
Press enquiries: Cath Cookson, 07799 713941 or Simon Sinclair 07769 684843.
Find out more at www.capitalstackers.com or by calling Steve Robson on 07774 718947.
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.