Raising £540,000 for a development of 9 detached executive homes in North Yorkshire has taken CapitalStackers’ deals past the milestone of £150 million raised in total for building projects – whilst maintaining its loss-free record. Bank finance accounted for £124 million with CapitalStackers’ investors contributing £28 million.
The Glam Living development in Church Fenton is typical of CapitalStackers’ unique contribution to property development – comprising a blend of P2P 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 banks, and enables banks to fund projects that would otherwise be beyond their scope.
It therefore revolves around strong, trusted working relationships between CapitalStackers and the banks – both rely on the other to make good deals happen, and they support and work with each other throughout. Glam Living specialises in developing in popular rural Yorkshire locations where there is a shortage of supply of elegant, bespoke houses in the £500K to £1m price range. The company is characteristic of the platform’s borrower profile – run by experienced developers who produce well-designed, well thought out housing schemes that withstand rigorous risk modelling.
Steve Robson, MD 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.”
Of the £150 million total, nearly £43 million has already been repaid to banks and over £15.7 million to small investors (at an average return of 12.91%). 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% and the highest 24.97% – with zero losses.
So as CapitalStackers prepares to launch its brand new website, with 190 active investors and some 300 waiting in the wings, it’s worth reflecting that none of this success is by accident. The zero loss record – even throughout the current cocktail of global crises – is a living reflection of the core directors’ experience as property lenders with top-drawer banking pedigrees.
The directors have adhered throughout to their key principle of never allowing a trowel to be lifted or a penny to be drawn down until all the funding is in place – when many competitors fell by the wayside because they were unable to find fresh investment in times of crisis.
So while the pandemic (and ensuing supply shortages) may have caused understandable delays and hiccups, ongoing funding has not been a barrier to completion for CapitalStackers projects. In a world where uncertainty is now the only certainty, the CapitalStackers team have long been experts at pricing-in and preparing for risk. And it’s a testament to their steady hand on the tiller that not a single deal entered the red zone during lockdown.
It’s also a demonstration of the proficiency of the wider team, with whom CapitalStackers has built enviable working relationships – not least Manchester solicitors, Taylors, who have worked closely with the Directors for 8 years and have professionally scrutinised every single CapitalStackers deal.
Taylors’ Matthew Catterall commented, “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 CapitalStackers 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.”
Such strong, loyal relationships are the mortar that binds this wider team – the banks, surveyors, solicitors and accountants who work with CapitalStackers – allowing them to provide this unique service. The homes it has funded would never have been built if it weren’t for the platform and its investors. And as others pull out of the P2P sector, CapitalStackers simply plants its feet and takes a firmer stance – at a time of national housing shortage. They form a robust and invaluable pillar to support our UK housebuilding industry.
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