Member Article

Disruptive property investment platform CapitalRise aiming to cut out the middleman

The recently launched investment platform CapitalRise is looking to cut out the middlemen and get everyday investors investing directly in real estate as it disrupts the traditional trust and fund-dominated model.

Launching yesterday, the new platform has been founded by property experts Alex Michelin and Andrew Dunn who are both directors and founders at design and development firm Finchatton, and is also helmed by Wonga’s former Head of Product Uma Rajah.

Focusing on premium real estate, the FinTech firm claims that it offers high returns from other platforms, typically in the region of 10 to 18% a year, and opens up the market for ordinary investors looking to stump up amounts from as little as £1,000.

Chief Executive Uma, who was appointed in December 2015, believes that investors on the platform will benefit from greater returns in the current climate of rock-bottom interest rates.

She added: “With a reported 21% of UK adults earning 0.5 % or less interest on their savings due to low interest rates and limited product choices, many savers are looking for other or additional options.

“Real estate has historically been one of the best performing asset classes to invest in but the higher grades of investment were previously only on offer to institutions or high net worth investors3.

“At CapitalRise, we are determined to change this and give everyday investors access to a new profile of investment which could generate returns of 10-18%.”

The first investment opportunity to go live on the new platform is the £8.15m Eaton Square Belgravia development, which is looking to raise £1m for the refurbishment of a grand 2,400 sq ft, three-bedroom apartment.

CapitalRise hopes to build the selection of investments available in the coming months, with users given the opportunity to invest in assets that have been carefully scrutinised by the team and would previously have only be accessible through real estate investment trusts or funds.

Co-founder Alex Michelin commented: ““Over the past 12 months, we’ve developed a model which we believe is what everyday investors are looking for – access to the finest real estate investment opportunities that generate excellent returns with no fees.

“Historically, the only option for most people has been expensive and indirect investment through funds or REITs. CapitalRise aims to disrupt this old way of investing in property.”

In a further display of the trust they are placing in their approach, both Alex and Andrew plan to invest their own personal money in every property that appears on the platform.

“We want to enjoy and share in these high rates of return, and show other potential investors how confident we are in the opportunities we have selected,” added Andrew.