In July 2024, CapitalRise passed the milestone of successfully repaying over £200 million of invested capital and returns to its customers since launching in 2016. CapitalRise offers investors access to luxury real estate-backed investing opportunities across London and the South East.
Reaching this milestone is a testament to the sustained performance of the firm’s investment opportunities over the past eight years, driven by the founders’ wealth of first-hand property development experience and FinTech expertise. By carefully choosing which projects to fund, the firm ensures that every investment opportunity it presents is aligned with its stringent selection criteria. Rigorous project monitoring then takes place throughout the lifecycle of all property developments, to check that the project – and the loan – is performing as expected.
The firm’s specialist focus on a unique real estate asset class – luxury property in locations such as Chelsea, Mayfair, and Kensington – is another contributory factor that they acknowledge. The resilience of the prime property market has been another key factor in CapitalRise reaching the £200 million milestone. Historically, the sector’s strength has been due to its naturally constrained supply in relation to demand, which is increased by the popularity of these exclusive residential properties with ultra-wealthy buyers from across the globe. As such, over the last few decades, prime property has repeatedly been shown to hold higher values and recover quicker from economic downturns compared to the wider UK residential real estate market. Offers on Prime Central London properties, for instance, are currently up 45% compared to 2023.
CapitalRise provides access to real estate-backed investment opportunities in these sought-after postcodes through its FCA-regulated online platform, which allows investors to part-fund loans secured against prime property assets. Previously only available to those with millions to invest, these opportunities are now accessible to all eligible investors starting from £1,000. With its Innovative Finance ISA product, investors can also receive the added benefit of tax-free returns, further enhancing the appeal of this asset class.
Today, the platform continues to grow in popularity with investors. CapitalRise saw a 57% year-on-year increase in new investments made via its bespoke online platform at the end of July 2024. It also processed £21.5m of investments in that month alone, a new record for the firm. As investors look to make their money work harder – particularly during times of high inflation – CapitalRise attributes the increasing popularity of its platform to this broader demand for attractive, risk-adjusted returns.
Uma Rajah, CEO and Co-Founder, CapitalRise, said: “The recent £200 million redemption milestone reflects our longstanding and conscientious approach to the investment opportunities we offer. We only partner with carefully selected borrowers and focus on high-quality projects in sought-after areas such as Chelsea, Mayfair, Wimbledon and Ascot – some of the locations where we funded projects this July.
“We are extremely proud of our repayment track record. It is vital for us to maintain our high standards, which enable us to attract and retain investors. This has been recognised by our excellent Trustpilot rating, as well as our recent success at the prestigious British Bank Awards, our fifth consecutive win at the awards based on the votes and reviews of our valued customers.
“What we’ve seen over the past few years is that, as investors seek new and innovative ways to maximise returns and protect their wealth from the effects of inflation, the risk-reward profile of prime property-backed opportunities remains a popular choice.”