PropertyBridges.com plans to deploy funds across Ireland to more than 100 development projects totalling over €100m (approximately £88m) in lending, with the support of more than 10,000 Irish citizens investing through the platform in the next three years.
The P2P platform’s average loan size will be around €1.1m (approximately £1m) and lenders can invest into each loan from as little as €500 (approximately £440) up to a maximum of €100,000 (approximately £87,924) and will return on average approximately 8%.
PropertyBridges.com will raise funding for SME construction firms and private companies looking to develop housing.
The platform has already launched its first two loans which are:
- a £450,000 loan to support the construction of a two-storey mews development in Sandycove, Dublin, which offers investors a return of approximately 8.5%
- a £620,000 loan for the construction of six new houses for Kilkenny County Council, which offers investors a return of between 8-10%.
“On returning to Ireland after several years living in London working in the finance industry, I realised how the P2P model could be a fantastic benefit to the Irish property landscape,” said David Jelly, CEO at PropertyBridges.com (pictured above, second right).
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“The old property industry was an exclusive club in which ordinary investors had little or no access to.
“With technology and the P2P model, we can provide access and transparency to this once opaque market.
“With the help of the NDRC (National Digital Research Centre) and Enterprise Ireland, we have the technology, research, contacts and business model in place to be a disruptive platform in the sector.”
Marc Rafferty, investor, and David Jelly, CEO at PropertyBridges.com
Michael Fitzpatrick, head of credit and portfolio management at PropertyBridges.com, added: “The alternative lending market has become more and more popular for property developers of a small to medium size in Ireland over the last seven to eight years, following the lead of the UK.
“Having worked on the delivery side of property development for 10 years, followed by five years in the alternative lending market in London, the need for specialised underwriting has become clear.
“Our initial offering is servicing a funding market that many others in the market ignore because it is seen as too small, but we feel there are many opportunities in this market, with highly capable small developers who can make a sizable contribution to the national housing market.”