Crowdstacker sees high demand for real estate development loans

Crowdstacker has seen tremendous demand for its real estate development loans (PDLs) since its recent launch.

The projects are offered as mezzanine loans and the PDL loans are secured against the value of the project as a second charge after the senior lender.

Since launching its first PDL at the end of the summer, the peer-to-peer lending platform said “uptake has been very strong” with all of its investments so far having been made within days of launch.

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“Crowdstacker’s focus from the start has been to provide investments for larger small and medium-sized businesses, and along the way we’ve partnered with several real estate development companies,” said a spokesperson for the platform.

“We saw how popular these were with our investors and there was a demand for more. We have created PDLs to be able to offer specific real estate investments where investors can see all the details of the actual construction of new homes, e.g.

“We wanted the experience for investors to be like a real estate developer without actually having to mix cement or pick up paintbrushes – something they can enjoy remotely and from the comfort of their armchair.”

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The platform said its PDLs are available to invest using its Innovative Finance ISA wrapper and these have proved “very popular” with their investors so far, with the target amount for each loan being met in just a matter of days .

“Because of this, we expect strong demand from investors using their ISAs,” the spokesman said.

“Currently, about one in ten investors in a PDL uses their ISA.”

Crowdstacker has previously offered P2P loans and crowdbonds to a range of businesses such as nightclubs and vehicle leasing, as well as firms providing development finance including Clearwell Capital, but has been offering PDLs directly through the platform since August.

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