Fresh from raising £1m in just eight days to fund a renovation project on Eaton Square, new high-end property crowdfunding platform CapitalRise has gone even more up-market with its second investment opportunity: raising another £1m for an apartment on Grosvenor Square in Mayfair, with an expected post-development value of £18.8m.
Rolling out with two projects in two of the best addresses in the world is a pretty strong statement of prime intent from the new prop-fin-tech venture, founded by Finchatton’s Alex Michelin and Andrew Dunn and former Wonga Group star Uma Rajah.
The first CapitalRise project – a Finchatton refurbishment of the ground- and lower-ground floor apartment on Eaton Square, with a post-development valuation of £8.15m – was deluged with investors looking to put in anything from just £1,000 to get a 10% annual return over 18 months. It sounds like demand was so high that many would-be investors missed the boat, so the team has fast-tracked the next project – which offers similar returns.
CapitalRise was founded by Finchatton’s Alex Michelin and Andrew Dunn, with Wonga’s Uma Rajah as CEO. Read PrimeResi’s exclusive interview with Michelin and Rajah announcing the launch of the new “institutional grade” real estate crowdfunding platform here.
This second investment opportunity is a third-floor 3,500 square foot lateral apartment on the good side of Grosvenor Square – which is in the midst of one of the capital’s most ambitious super-prime makeovers, with significant US diplomatic buildings being converted to high-end hotels and residences. It’s a little unusual – and theoretically has lower risk – in that the property, which was acquired back in 2013, has already been renovated by the developer, PSJL (a consortium – involving CapitalRise’s founders – which is also developing an £800m luxury residential development nearby in Mayfair).
The plan is to use the flat as a show apartment for the rather high profile scheme next door at No.20 Grosvenor Square; the resi reversion of the former US Navy building into 37 super-prime apartments – Four Seasons Residences, no less – is a Finchatton project that we’ll have more details on next year…
CapitalRise’s £1m raise for the apartment at 18 Grosvenor Square is to fund a high spec refurb/upgrade of the building’s common parts and external facade (Finchatton has been appointed as interior designer) which “is expected to further increase the saleability of the apartment.”
PSJL – via its “Grosvenor Square Ltd” subsidiary – aims to keep the property until December 2017, when CapitalRise investors’ capital and interest will be paid out.
18 Grosvenor Square is a similar structure to the first deal, offering an expected annual interest return of 10% before tax, paid at the end of the loan term, with the estimated term being 21 months. The minimum investment amount is just £1,000, with a total of £1,000,000 being raised as debt.
As with all deals on the platform, CapitalRise’s founders will be investing their own personal money into this project.
Images courtesy of CapitalRise
Illustration of proposed changes to Grosvenor Square Gardens courtesy of Qatari Diar / Wetherell