CrowdProperty inks new institutional funding deal
CrowdProperty has announced a new institutional funding partnership with an unnamed UK bank, just one week after securing a £15m funding line from the British Business Bank.
The UK bank has joined as a lending partner in CrowdProperty’s institutional fractionalisation model. This is where financial institutions lend minority fractional parts of loans alongside other institutions and platform investors.
Mike Bristow, chief executive of CrowdProperty said that the new offering demonstrates how institutions can build more diversified portfolios in the “relatively lumpy and hard-to-originate UK residential property development market.”
“Reliability of capital is core to us offering finance with speed, ease and certainty – a very purposeful proposition which has been built around the fundamental needs of developers,” said Bristow.
Read more: Crowdstacker sees “sustained investment” into development loans
“We are delighted with this latest partnership with a UK bank which further galvanises our reliable offering.”
Bristow added that the new partnership further diversifies CrowdProperty’s funding sources, “which is core to its ‘diverse sources of capital’ strategy, and brings greater reliability of capital for property developers.”
CrowdProperty recently celebrated the funding of 3,000 homes to date, and revealed that it has grown its new facilities agreed by 55 per cent in the last 12 months.
Read more: CrowdProperty nears Seedrs target