CapitalStackers funding exceeds £150m
Peer-to-peer lending platform CapitalStackers has surpassed the £150m milestone for funds raised to finance building projects.
The property crowdfunding specialist raised £540,000 to finance the development of nine detached homes in Church Fenton, North Yorkshire, after which point the value of its arranged deals exceeded £150m.
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Banking finance was responsible for £124m of the £150m funding, CapitalStackers said, while the platform’s own investors added £28m.
Of the total amount, almost £43m has been repaid to banks, while small investors have been handed back over £15.7m, with an average return of 12.91 per cent.
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The platform said the remaining £12m was “still earning for investors in construction projects across the UK”.
The lowest return received by investors has been 6.9 per cent, while the highest achieved was 24.97 per cent. CapitalStackers maintains no losses have been incurred.
The Glam Living development in Church Fenton was funded through blended P2P and traditional banking finance. The platform said deals like it allow “small investors to get involved in the kind of property development funding that used to be the exclusive province of banks”. It added that these deals also enable banks to fund projects that would otherwise be “beyond their scope”.
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“This milestone is particularly pleasing given it has been achieved through very strong relationships with our senior funding partners and especially our investors, to whom I would like to pass on our sincere thanks,” said CapitalStackers managing director Steve Robson.
CapitalStackers attributes its success during the pandemic to its property experts adequately pricing in and preparing for risk.
It is shortly due to launch a new website.