Lord Stanley Fink leads £7m investment in UK’s first debt and equity property platform
Prominent peer and former hedge fund manager Lord Stanley Fink, has led a £7m investment in British Pearl, a UK property platform that launched today.
British Pearl is the first property investment platform to offer both debt and equity investments in individual property deals in one place. This enables people to split their investments between fractional equity ownership of property and to act as mortgage lenders in their own right.
Lord Stanley Fink, director, British Pearl, said: “Despite the doom-laden predictions that are being mooted because of Brexit, I’m backing British Pearl and UK property for three reasons: one, the country is in desperate need of new homes, which the government is working hard to provide, so the fundamentals are strong and the property market still presents many attractive opportunities.
Two, property has been one of the most consistent, profitable and trusted asset classes over recent times and, three, British Pearl is not only making property investment accessible but giving people two different ways to invest in it through one platform.
“We know investors don’t always want all their money tied up in property equity investment, so we’re giving them the option to diversify their portfolio into debt within the same platform. My investment in British Pearl is my own personal vote of confidence.”
‘British Pearl’s property loans are between 50% and 70% loan-to-value, which it said offers robust protection of investors’ capital.
The platform empowers anyone to build a property portfolio online, and has launched with three investments made up of six residential units — in Acton, Portsmouth and Lancaster.
Many more properties will be added in the weeks and months ahead and, in time, the company will extend its offering into commercial units.
Investments can be held in a tax-efficient ISA wrapper and these loans are lower risk and pay an attractive fixed interest rate every month.
Just like high street mortgage lenders, British Pearl’s loan investments are ‘first charge’ secured, unlike many peer-to-peer loans.
British Pearl’s tax-free interest on UK property loans is currently running at up to 4.4% per year, after all fees. You can invest up to £20,000 in an ISA in this tax year and you can effortlessly transfer funds from existing ISAs into British Pearl’s ISA for free.
Importantly, both the equity and debt investment products can be accessed from £100, while British Pearl’s ISA is fully ‘flexible’. This means people can move their cash in and out without depleting their annual ISA allowance.
For equity investors, there is increased protection since each property is ring-fenced in a standalone holding company, separate from the liabilities of other investments and British Pearl itself.
Ali Celiker, chief executive and founder, British Pearl, added: “Our goal is to give investors the all-important choice as to how they invest in the properties they select, whether the reduced risk associated with conservative LTV property loans, the greater potential upside of equity stakes or a mixture of both.
“Ultimately, we’re empowering people to design and diversify their investment portfolios to suit their own specific needs and individual risk profiles.
“It’s important to note that the debt investments we offer are not bonds issued by a company but first charge loans secured against property — just like a mortgage from a high street bank.
“The fact our debt product can be held in a flexible ISA is something else we expect to drive considerable interest.”
Aaron Mahadevan, marketing director of British Pearl, said: “I believe that the future of property investment will be traded on an exchange much like stock & shares are today.”