Member Article

CapitalRise champions new IFISA as it closes latest £1.2m deal in less than a week

Property investment platform CapitalRise has closed a funding deal for the refinancing of a residential development at Strand Chambers in less than a week.

The FinTech company said that it had managed to raise £1.2m from normal, everyday investors with the majority of that investment coming through its new Innovative Finance ISA (IFISA) which it launched in mid-March.

The deal in question relates to the partial refinancing of Seastar Developments Stand Chambers development at 227-228 Strand in London and becomes the fourth such deal to be financed on CapitalRise’s platform.

Other deals to close on the platform recently include similarly high-end residential developments in areas such as Knightsbridge, Mayfair and Belgravia, with £4.2m raised from regular investors across all of its investment opportunities so far.

Launched in July last year, CapitalRise was devised by Alex Michelin and Andrew Dunn, the founders behind design and development firm Finchatton, and gives regular investors the chance to invest in major projects across London’s property market.

Its new IFISA is one of a flood of new ISA products that have hit the market this year, giving investors the chance to invest from £1,000 to £20,000 tax-free to capitalise on the recent boom in alternative lending platforms in the last few years.

Uma Rajah, Chief Executive Officer of CapitalRise commented: “At £1.2m, this has been the largest fundraise on the CapitalRise platform to date, and it was raised within a week of public launch. We’re thrilled to close our latest deal so quickly and to see our new ISA be received so positively by investors looking for a tax-free wrapper and the potential for higher returns.

“Our previous deal for 38 Yeoman’s Row was so popular with investors that the offer closed in just 71 hours. Each of the three previous deals are on track to provide returns of 10% per annum.”