CapitalRise, the property lending and investment platform, has today announced that it has returned more than £32m to investors since launching in 2016. The average return on investment paid out to investors is currently 9.5% per annum with no investment losses or defaults recorded to date.
The speed at which their redemption total has increased indicates rapid growth. As of January 2019, just £5m had been paid out to CapitalRise investors, but less than 24 months later this figure now stands at over £32m.
In addition, July was a record-breaking month with £10m worth of loans originated across the month offering attractive investment opportunities to investors. The following month, August saw over £4.1m of investments processed, an increase of 222% growth versus the same month in 2019.
Loan volumes have been driven by a surge in demand from borrowers. As other lenders withdrew from the market during COVID, CapitalRise saw a 90% increase in funding requests, this is in addition to loan volumes tripling in 2019. So far this year, CapitalRise has successfully closed nine multi-million-pound deals across Prime London and Prime Home Counties.
On surpassing another redemption milestone, CapitalRise CEO and Co-Founder, Uma Rajah, said: “We’re thrilled to announce that we have passed another redemption milestone this year. Our focus remains on the quality of our investment opportunities and we’re proud to see a clear track record of zero losses and defaults despite the challenges posed by COVID. All of the development sites we have been funding have remained open and works have continued throughout the lockdown period so we don’t foresee any issues with our current projects. We believe this is a testament to our meticulous selection process, stringent due diligence and the fact are investments are structured to withstand significant levels of stress.”