The Proplend Model – Commercial Property Lending for Institutional Investors
The growth of peer-to-peer lending is increasingly attracting the attention of the institutional investors both directly and through listed investment trusts.
Proplend is participating in this growth by offering investors the ability to earn reliable and attractive fixed income returns of between 5-12% p.a.* by lending directly to the owners of income producing commercial property on a loan by loan basis. The loans are supported by a security package which includes, as a minimum, a 1st legal charge over the property.
Recent market dislocations have led to the development of an alternative investment opportunity in commercial real estate debt that offers investors attractive returns with limited capital risk.
Traditional property allocations invest in properties directly and rely on capital appreciation for a significant part of the return, these are equity investments.
Investing in commercial property debt, with the benefit of being the first to be repaid when the property is sold or refinanced results in lower risk plus attractive fixed income returns.
Due to its distinct benefits, peer-to-peer lending or ‘loan based crowdfunding’ to individuals and SME’s has gained traction with both individual and institutional investors. This new asset class offers diversification and yield to otherwise income starved investors in the current long-term low interest rate environment.
We encourage you to read more about Proplend and our P2P Lending model by downloading our white paper on Peer-to-Peer Investing.
*After fees but before bad debt and taxes