Skip to content
  •   Reviews
  •   Analysis
  •   IF ISA
  •   Cashback
Site Search

Home » P2P News » Property Partner Crowdfund ~£3m Development, breaking UK Record

Property Partner Deal Size P2P News

Property Partner Crowdfund ~£3m Development, breaking UK Record

  • October 26, 2017October 26, 2017
  • by Neil

Property Partner have broken the UK record for a property crowdfund with their latest student property development. The development: 65 student blocks in Newcastle is expected to yield 6.13% after all costs and fees. To put the size of this deal into context, I took data from their latest open house (September 2017).

I used the ‘date on resale market’ as to plot over time, which would lag the funding date perhaps by a month or two. Although not in the open house data, I’ve manually added the latest deal in red:

Property Partner Deal Size

Looking at the chart above, it is clear to see an upward trend in deal size right up to the Brexit vote (June 2016), a more stable period until this September and now this £3million deal. There was another recent £1.13 million student accommodation development which also hasn’t showed up in the latest open house data.

Why was it so popular?

My thoughts are:

  • It was a high dividend yield property with 2 year track record
  • As an outsider looking in, Property Partner seem to be targeting more and more high wealth individuals who have more to invest in a single deal. An example of this is the refer a friend scheme now based on £10,000 minimum investment (as opposed to £1,000 or £2,000 in the past).
  • The popularity of PBSA (Purpose Built Student Investment) in the search for investment yield
  • A sense of scarcity created from good sales technique from (e.g. emails offering guaranteed investment in an ‘advance pre-order’ to the ‘pre-order’)
  • Growing trust in Property Partner platform

How does it compare?

In terms of pure equity property crowdfunding (not lending) it appears to be far ahead of other UK competitors. Property Moose raised about £600,000 for a South Yorkshire student accommodation portfolio in the second half of 2016.

The total purchase price was actually £5.36 million, but mortgaged to increase leverage.

Monzo Review: (For Now) an Ideal Pre-Paid Card for Frequent Travellers
How to Save 10%+ Booking a Hotel (UK Method)
2 COMMENTS
  • Luke Graves
    November 2, 2017 at 10:45 am
    Reply

    Hi Neil, How come you haven’t been publishing any of your monthly income reports? That is a big reason I come to the site to see your progress.

    1. Neil
      November 2, 2017 at 12:54 pm
      Reply

      Hi Luke,
      I haven’t had the time to do them recently – it takes a lot longer than it looks to put all the numbers together and double check etc. I’m hoping I can restart in the New Year.
      Thanks,
      Neil

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Contact Details

You can get in touch with me at [email protected]

Offer Notification List

Think 'Secret Flying' but for P2P cashback bonuses. No weekly updates, just genuinely good offers.

© Copyright 2018 P2Pblog.co.uk   |   Disclaimer   |   Privacy Policy