Propio.com, an online property investment platform offering both debt and equity opportunities, has six deals as it expands nationwide for the first time.
Each of the six new opportunities are secured loans offering annual returns between 6% and 9%. They include office schemes in Cardiff and South Wales, a restaurant in Oxfordshire and residential projects in Cornwall and High Wycombe.
Tom Buttress, co-founder of Propio.com, said: “Property is a great diversifier and for those comfortable with some risk, crowdfunding is a great way to balance out a portfolio with investments that offer far higher returns than cash ISAs or vanilla property funds.
“Our decision to look beyond London has been in response to our users demanding greater diversification and with confidence holding firm in many regional markets, we are confident that with careful deal selection and conservative underwriting, there is tremendous opportunity for be found.”
While London’s prime residential market has been under pressure, the regional markets for residential and commercial property remain buoyant.
Take-up in the regional office markets reached 10 million sq ft during last year, 12% above the 10-year average, according to Savills. The agent predicts take up will be around 9.5 million sq ft this year.
Propio.com aims to help investors diversify their investment portfolio with direct exposure to property. Investors pick individual opportunities via the website with a mix of debt and equity options.
The Propio.com platform lets users manage investments across any device its’ debt opportunities have a fixed timeline for maturity – which means users know when they will get their money back.
The platform has also just reduced its minimum investment entry point to £250 in a bit to encourage millennials and other investors turning away from buy-to-let.
With a range of asset-backed debt and equity positions (where investors buy shares in the company developing a project), Propio.com offers opportunities at different points along the risk curve. Debt returns start at 6% while returns on equity investments can be as high as 11%, but carry more risk.
A typical property fund has returned just 3-4% per annum over the last three years.