Altfi.com reports “Proplend is predicted to grow the most on a percentage basis with a massive 208% year on year growth.”
How can this type of growth occur? Because the UK Commercial Real Estate market, especially the sub £5m market, is in need of Lenders…
Proplend is one of the leading UK Commercial Property Peer-to-Peer Lending (P2P Lending) platforms. Specialising in sub £5m loans secured against UK income producing commercial property, Proplend is servicing a sector that in 2007 had approximately 60 to 70 “traditional” lenders and now has only about 10.
We recognised the opportunity, buried into the problem, and created a platform to help yield hungry investors with cash to connect with and lend to borrowers who own income producing commercial property and can make monthly interest payments. There is approx. £50bn of outstanding commercial real estate debt that needs to be refinanced over the next 2-5 years, so it’s a huge opportunity for fixed income investors.
We believe Commercial Real Estate Debt is the perfect complement to P2P lending. The income (rental income) pays the monthly interest, and should the borrower be unable to pay the interest or the loan principal, the security can be sold and the proceeds used to repay the lenders.
The Commercial Real Estate sector is also seeing an increase in property values, perhaps not to the same extent as residential but a rise based on income growth which is more sustainable. Legal and General Property reported in November 2015 that rental growth is on the rise, being driven by a strong tenant demand and a lack of supply. This is especially evident in the office and industrial sectors, with retail lagging slightly behind. This has resulted in commercial property prices rising almost 20% since 2014.
The findings of the Legal and General Property report are complimentary to the research and underwriting that Proplend has done on our most recent loan investments. Having funded an office block in Croydon and an industrial and office retail park in Newcastle, we concur that tenant demand for excellent location and adaptable space is on the rise and is helping to increase the value of the properties.
Peer-to-Peer lending has revolutionised the traditional bank lending industry. The traditional finance sectors are being left behind, as P2P platforms are able to easily adopt new technologies and process information quickly. At Proplend, we continuously apply the latest technology, integrating it with our traditional lending underwriting model, creating an efficient, transparent, and inclusive platform.
Proplend offers investors, with varying risk profiles, the opportunity to increase their monthly income by building a portfolio of commercial property loans, all secured by a 1st legal charge over the property. Proplend investors are able to benefit from the lending demand and growth in the commercial property rental market, with a minimum investment of only £5,000. REGISTER TODAY to find out how you can build a diversified portfolio of commercial real estate debt.