A new online property investment platform, InvestSure, is aiming to bring together professional investors and property developers to help address the chronic lack of available finance in the UK property market.
InvestSure says it will allow property developers to access a diverse range of funding for projects, where previously traditional banks have been unable or unwilling to provide it. InvestSure explains that better access to funding will be a vital component in helping Britain solve the housing crisis.
InvestSure differs from ‘peer-to-peer’ entrants into the space in that it is only open to professional investors, reducing risk and making it the first ‘pro-to-pro’ network of its kind. The platform has been launched to address the increasing two-tier nature of the UK property development market, in which small to medium sized developers are struggling to acquire funding on favourable terms thanks to tight banking restrictions.
Developers using the site will benefit from being able to quickly and efficiently secure funding for projects without being dependent on a small number of investors for equity, thus retaining greater control and improving margins.
On the other side of the equation, the platform will provide the cash-rich professional investor community with a wide range of attractive investment opportunities at a time when returns are difficult to find elsewhere.
Janine Lewis (pictured), CEO and founder of InvestSure, says: “The UK property market has been seriously dysfunctional for some time. Since 2007, bank lending has been limited to 65 per cent loan-to-cost at best, leaving developers to bridge the gap. This prevents them from moving quickly, and as a result activity has been opportunistic and sporadic. It has also placed an inordinate amount of power in the hands of investors, diminishing profits. The InvestSure platform will rebalance this relationship, allowing developers to gain exposure to numerous investors competing to fund projects, making the process quicker and more efficient.
“This is sorely needed. We are in the midst of a housing crisis, one that cannot be solved by large developers alone. The money is out there: there are plenty of professional investors out there willing and able to fund these projects. InvestSure can connect these two groups together in an efficient, convenient, and mutually beneficial way.”
The InvestSure platforms covers all forms of property investments across the UK, including development projects, assets, land and bonds covering every asset class. Development opportunities are only viewable by investors (not other developers), and investors are able to search and filter opportunities to match their investment profile. Brokers and intermediaries are also able to use the site, splitting fees with InvestSure. Projects can also be funded through syndication.
Until the end of 2016, investors and property developers can become members of InvestSure free of charge.