A team at north west law firm Taylors Solicitors has advised real estate lending platform CapitalStackers on its latest deal, taking it past a £150m funding milestone.
Stockport-based CapitalStackers has raised £540,000 for a development of nine detached executive homes in North Yorkshire, taking the total raised by the peer-to-peer crowd-funding specialist to £152m.
CapitalStackers provides funding for commercial and residential property building projects to borrowers who are a mix of investors and developers. Bank finance has accounted for £124m of the total raised, with CapitalStackers’ investors contributing the remaining £28m.
The latest deal sees CapitalStackers provide funding for a Glam Living scheme in Church Fenton. Glam Living specialises in developing in popular, rural Yorkshire locations where there is a shortage of elegant, bespoke houses in the £500,000 to £1m price range.
Steve Robson, managing director of CapitalStackers, said: “This milestone is particularly pleasing given it’s been achieved through very strong relationships with our senior funding partners and especially our investors, to whom I would like to pass on our sincere thanks.
“Our model comprises a blend of peer-to-peer and bank finance that allows small investors to get involved in the kind of property development funding that used to be the exclusive province of the banks, and enables banks to fund projects that would otherwise be beyond their scope.
“The latest deal for Glam Living is characteristic of our borrower profile – a company run by experienced developers who produce well-designed, well thought-out housing schemes that withstand rigorous risk modelling.
“We have always adhered to our key principle of never allowing a trowel to be lifted or a penny to be drawn down until all the funding is in place. Our model forms a robust and invaluable pillar to support the UK house-building industry. Many others have fallen by the wayside because they were unable to find fresh investment in times of crisis.”
Taylors Solicitors has advised CapitalStackers on every deal since the platform’s inception eight years ago.
Matthew Catterall, a corporate partner at Taylors, said: “Having worked with Steve and the team at CapitalStackers since 2014, we have built a fantastic working relationship that is based on a deep understanding of the business, allowing us to anticipate their needs and deliver streamlined, effective advice.
“Huge congratulations to Steve and the rest of the team on reaching this milestone, which demonstrates just how great the CapitalStackers product and team are.”
Of the £152m total now raised by CapitalStackers, nearly £43m has already been repaid to banks and over £15.7m to small investors at an average return of 12.91 per cent.
The remaining £12m is still earning for investors in construction projects across the UK. The lowest return received by CapitalStackers investors has been 6.9 per cent and the highest 24.97 per cent – with zero losses. The platform has 190 active investors and around 300 waiting in the wings.
