Funding deal

Peer-to-peer lender secures multi-million-pound funding for housing project

Peer-to-peer (P2P) lender CapitalStackers has secured almost £3m of funding for a new housing development in Malpas, Cheshire.

The firm successfully drew down £1.36m towards the eight-home scheme, and negotiated a further £1.58m of senior funding from a major high street bank on behalf of the developer Orchard House.

CapitalStackers’ investors are now expected to receive returns of between 10.7% and 15.6% per annum over the next 22 months, with lending at LTVs ranging between 55% to 73%.

Steve Robson, managing director of CapitalStackers, said: “Investors were invited, at the back end of last year, to lend into three layers and choose their own level of risk and return.

“They are attracted not only by the high level of returns available, but the transparency and ease of the deals.

“We now have 150 investors on the books and rising, plus an exciting development pipeline.”

The Orchard House project has a development value of £5.1m.

Work was expected to begin towards the end of January and two properties are already under offer, with several being reserved off-plan.

The developer also has in-house design capability, meaning each home can be partially bespoke depending on the buyer’s requirements.

This latest investment follows an office-to-residential conversion CapitalStackers financed in York last year, through which some investors earned returns of up to 22.5%.

Patrick Lomax, founder and director of Orchard House, added: “I have been impressed with CapitalStackers detailed knowledge of the property industry and finance market.

“We dealt with an experienced and senior team, who absolutely delivered to the brief and exceeded our expectations.

“We spoke to a number of debt advisers, but none came close to the same level of service and professionalism.”

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