Property investment platform Sourced Capital closed its most recent deal, which will be used to fund a development loan for two luxury new-build residential properties in Cuddy Hill, Preston.
Both properties are set to be substantial in size with high-end fittings. Plot one, which is sized at 5,300 sq. ft, will also include an indoor-swimming pool.
The loan will be used to purchase the quarter of a hectare plot and to fund the associated build costs. It has a term of 18 months to accommodate the development and sales periods and a loan to gross development value of 61 per cent.
This is the second loan that Sourced Capital has funded in the last two weeks, the first being a £218,000 loan for the refurbishment of a four-bedroom house in Swansea.
There has been huge demand for investments from Sourced Capital, which is directly authorised by the Financial Conduct Authority (FCA). Since the start of the year, Sourced Capital has originated more than £10m in loans and expects to lend more than £22m by the end of the year to small and medium sized developers across the country.
Derek Pratt (pictured), commercial director at Sourced Capital, said: “We are delighted to be working very closely with the developer on this exciting project and we look forward to seeing these two luxury properties come to life over the next 18 months.
“Over the last seven months, we’ve seen a notable increase in demand for these types of property investments and our most recent opportunities have helped to satisfy this demand amongst our qualified investors.”
Sourced Capital has returned over £16m of capital and circa £2.77m of interest to investors since its inception in 2019 and has now funded more than £32m of loans for property developments across the UK.
