CrowdProperty Australia expands retail investment opportunities
CrowdProperty Australia has launched the Retail Investment Trust to extend the availability of loans to more investors, not just those of a certain wealth level.
CrowdProperty launched in Australia in May 2021. Until now, only wholesale investors were eligible to invest, accounting for a small 16 per cent of Australians with a certain wealth profile.
In an announcement today, the firm said: “We’re realising our aim of democratising financial access to short-term real estate development debt.”
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The new CrowdProperty Retail Investment Trust is open to individuals, self-managed superannuation funds, other trusts – such as discretionary trusts – and companies.
It is targeting returns of up to 8.5 per cent, depending on the terms of the project loan and investors can initially invest a minimum of AU$2,500 (£1,377).
Loans will generally be for short to medium term investment periods of between six to 18 months. Investors can choose to diversify their investments across several selected loans, borrowers and geographic locations.
All project loans will be managed by CrowdProperty and have the option of reinvesting capital and income into new project loans which will be added to the platform over time.
Read more: CrowdProperty Australia launches real estate debt fund
Since launching in Australia, CrowdProperty has reviewed more than $445m in project loan applications, selecting just four per cent for funding.
In the UK, which has lent more than AU$536m over eight years, the platform has a 100 per cent record of returning capital and income to investors, a record that has been matched in Australia in the first 18 months.