18 April 2023
British Business Investments today announces it has committed £15m to CrowdProperty, the Midlands-based specialist property development lender. This investment will help increase access to finance for small and medium sized housing developers and will support more housebuilding.
British Business Investments, a wholly-owned commercial subsidiary of the British Business Bank, aims to increase the supply and diversity of finance for smaller businesses across the UK by boosting the lending capacity of a range of finance providers. Since it was established in 2014, British Business Investments has committed more than £3.3 billion to providers of finance to UK smaller businesses.
CrowdProperty’s mission is to transform property finance to unlock the potential of small and medium sized property developers to build more, much needed and under-supplied homes. CrowdProperty’s customer-centric funding proposition and property expertise help developers grow their businesses more quickly. CrowdProperty has supported the development of more than 3,000 homes worth over £675m to date, throughout Great Britain, with 94% of lending in the regions outside of London.
Judith Hartley, CEO, British Business Investments, said:
“Our commitment to CrowdProperty will help increase access to finance for smaller housing developers, particularly in the regions outside of London. Supporting independent operators such as CrowdProperty contributes to British Business Investments’ mission to increase the diversity and supply of finance for smaller businesses across the UK.’’
Mike Bristow, Founder and CEO, CrowdProperty, said:
“We’re delighted to be adding British Business Investments as a CrowdProperty lending partner. This is another step forward for us as a business that was founded to better support the projects and developers that deserve funding. We look forward to seeing the partnership flourish over the long term, as we support more housebuilding and help increase spend in the economy on labour, materials and services.”
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British Business Investments Limited is a wholly owned commercial subsidiary of British Business Bank plc, the UK government’s economic development bank. British Business Investments aims to earn a commercial return by investing – through finance providers – in smaller businesses and small mid-caps, pursuing investments on a fully commercial basis without receiving any economic advantage from the government. Find out more at bbinv.co.uk.
The Bank and its subsidiary entities are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.
The transaction described above does not constitute or imply any endorsement, warranty or recommendation by the UK government, the British Business Bank plc or its subsidiaries or any other party in respect of CrowdProperty or its products or services.
CrowdProperty (www.crowdproperty.com) is the UK’s leading specialist property project lending platform – a profitable fintech/proptech online-lending innovator changing the game of property project finance. It has featured for three years running in FT1000 Europe’s fastest growing companies in Europe.
CrowdProperty has funded the development of 3013 homes worth £679,000,000, originating over £376,000,000 of agreed facilities and lending more than £303,000,000 to date. This has supported over £244,000,000 of spend on labour, materials and services in the UK economy.
CrowdProperty finances quality property projects being undertaken by quality property professionals. Projects are ready and able to proceed, with clear exit plans in liquid markets, delivering a quantum of units that is immaterial to proven local demand levels, at mainstream price points throughout the UK.
Empowering the multitude of SME property development businesses which are key to delivering ‘build, build, build’, CrowdProperty is tackling the fundamental barriers behind declining SME developer housing output, unlocking the much needed delivering of new homes and spend in the UK economy.
Whilst profitable and robust, the business continues to invest in team, systems and processes to build deeper efficiency, effectiveness and competitive advantage to support a much larger lending business vision, for which there is already huge demand.
All loans are secured by a registered legal charge against property in the UK.
CrowdProperty Ltd is a company registered in England, with its registered office at 54 Hagley Road, Birmingham, B16 8PE (Company No. 08764786).
CrowdProperty is registered with the Office of the Information Commissioner (Reg no. PZA047468).
CrowdProperty is authorised and regulated by the Financial Conduct Authority registration number 723959.
CrowdProperty is not covered by the Financial Services Compensation Scheme.
All new projects on CrowdProperty are put through extensive due-diligence and screening by a team of property experts to ensure they represent a robust and secured opportunity. Once it has been CrowdProperty approved, the project is added to the website’s projects section where private individuals (lenders) have the opportunity to pledge money. Contributions are paid directly to the Company’s solicitors and are only taken once the funding target is fully subscribed. Once the project is financed, it is carefully monitored by the CrowdProperty experts as it progresses to ensure money is being used correctly and the project is on target to reach or surpass its success criteria.
Sub-Editors – please note that CrowdProperty should always be written as one word with a capital C and P.Back