The facility — funded through the P2P platform — was agreed at 69% LTGDV over a 15-month term.

Investors will receive a targeted return of 10-12% per annum, with the higher rate applicable to investments of £20,000 and above.

The loan will be provided in two tranches — the first one, totalling over £850,000, will support the site purchase, while the second tranche will offer the remaining funds required to complete the development.

•   Differing definitions of net zero could be stalling planet-positive construction with greenwashing, claims developer
•   Sourced Capital reveals £12m loan pipeline
•   CrowdProperty celebrates funding over £500m of development projects to date

Derek Pratt, commercial director at Sourced Capital, said: “Property investment has long been a popular choice for investors interested in the comfort of tangible asset values. 

“Given the combination of P2P, providing the ability to easily diversify exposure across a portfolio of properties, and rising inflation causing investors to review their strategies to avoid net value erosion, it is no surprise to see increasing investor interest in the P2P sector. 

“For those investors who were not able to participate on this occasion due to the speed of the loan being fully filled, we have a strong pipeline of further asset-backed property development investment opportunities due to open for investment over the coming weeks.”

To date, Sourced Capital has funded over £25m of loans for property developments across the UK, and has returned more than £15m to investors.