FCA-authorised, Homegrown will enable retail investors to access residential development projects alongside institutional investors with targeted average net returns of 15% per annum and
Homegrown has a minimum investment of £500 per project and will focus on high-demand, urban areas predominately in London and the South East.
The platform will only invest in pre-vetted and fully underwritten residential developments that have already received planning permission and bank finance.
Anthony Rushworth, CEO at Homegrown, said: “Homegrown is about giving everyday investors access to the often-superior development returns that are typically only available to professionals and institutions.
“It also helps them to do their bit in solving the housing crisis by providing property developers with much-needed equity finance.
“We also like to think we’re filling a major hole for many UK investors left by the buy-to-let exodus.
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“With the raft of tax changes imposed on it, buy-to-let is no longer the investment it was and investors are increasingly looking for alternatives.
Homegrown adds its own layer of due diligence, including analysing financial assumptions and reports, undertaking a sensitivity analysis, and only investing in projects whose developers have a strong track record of delivering on schedule and within budget.
“Crucially, the developments we put on our platform have already been underwritten and approved by some of the sharpest minds in the business, and we take the cream of that crop,” added Anthony.
“The platform also provides investors with an opportunity to easily diversify their risk by spreading their investment across a number of developments which are being added to our platform all the time.”
Investors can monitor the performance of their investment all the way to completion.
In its test phase, Homegrown funded developments in areas such as Hackney, the Docklands, Norbury and Kilburn with a gross development value of £140m.