The property investment and development company raised the funds from investors through its crowdfunding platform for the construction of the Royal Crescent Apartments, opposite Ocean Village.
The scheme comprises a part five-, part seven-storey block with underground parking and 101 flats as well as over 5,000 sq ft of commercial space.
The development forms part of the regeneration in the area and Shojin worked with Southampton City Council to increase the number of units from 88 to 101.
With a total development cost of £13.2m, the scheme is expected to be fully exited in April 2018, with the estimated value on completion being around £22m.
Shojin has also raised just under £2m in investor capital for two further crowdfunded developments: a mixed-use enhancement scheme in Southend and a residential development in London.
The company’s crowdfunding platform was developed to bring together those looking to invest in property development and offers returns of between 20-25% annualised.
Over the past eight years, Shojin has completed six residential investment projects, and raised and invested in excess of £14m in projects with development values of over £100m.
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“We have been delighted by the response that we’ve received from investors for our range of crowdfunding development projects,” said Jatin Ondhia, CEO at Shojin Property Partners (pictured above).
“Until now, most investors have focused only on the buy-to-let market, mostly because they did not have access to property development opportunities.
“We give investors access to the lucrative development market, backed by our extensive expertise.”
Investors have the chance to invest from as low as £5,000 and once funds have been invested in a project, they will receive interest of 5% per annum on their capital while the project begins.
Jatin added that its due diligence team was very experienced and that it oversaw each project until completion.
“What makes us unique is that we look after our investors’ interests and are only rewarded at the end when a project completes and the investors have been paid their profits.
“Our model is unlike many of the other crowdfunding platforms as our interests are totally aligned with our investors throughout the entire process.
“We don’t take large upfront fees, only then to leave the investor to fend for themselves for the outcome of the project.
“We co-invest our own money alongside every investor on every project, and then share profits at the end.”