The UK's leading specialist property project lending platform - a profitable fintech/proptech innovator
- Funded £665m of property projects and 2,988 homes
- 55% YoY growth in finance facilities agreed (totalling £368m)
- Three years running in FT1000 Europe’s fastest growing companies
- Profitable*; fundraising to fully fund a new 3-year strategy
There’s a housing crisis in the UK and developers have for years been held back by the challenge of raising finance for their projects.
Our mission is to unlock the potential of small and medium sized property developers to build more, much-needed and under-supplied homes by transforming property finance. We help developers grow their businesses quicker and drive spend in the economy on labour, materials and services.
CrowdProperty is the UK’s leading specialist property development lending platform – a multi award-winning, profitable* and disruptive fintech/proptech innovator with a scalable, customer-centric approach to the property development finance market.
*Based on unaudited management accounts
Property expertise is at the heart of the business, and our team’s 300+ years of property development experience means we deliver finance with the speed, ease, certainty, transparency and expertise that developers crave to help them succeed - ‘property finance by property people’.
We’re award winning…
… and support great housebuilding:
Substantial accomplishments to date
- £665m of property projects and 2,988 homes funded
- £368m of first-charge secured facilities agreed
- £11bn (11,500) of finance applications received; £400m in January
- £870m of facilities in the pipeline
In the last 12 months:
- Grown new facilities by 55%, despite an understandably slower Q422 (Q1-Q3 22 grew 76% year-on-year)
- Grown revenue by 41%
- Returned a second consecutive year of profit from operations (and more profitable year to date this year), despite significant investment in technology, infrastructure and operations to drive long-term growth and scalability
We’ve repaid £172m to our diverse institutional and private investor capital sources with an average first-charge secured return of 8.07%; closing further institutional capital sources following months of due diligence, validating the strength of the business.
We’ve also proven:
- Economics and profitability of the business model
- Consistent growth, developing scalable technology, operations and routes to market
- Significant market share gains in a very large and fragmented development finance market with huge upside potential
- Relevance of ‘property finance by property people’ through growth and repeat business (43% of lending is to developers borrowing more than once despite strong new customer acquisition)
- Scalable, diverse and reliable capital sources
- Structural cost advantage with a non-London cost base
- Extension of the business model internationally (Australia JV) and into adjacencies (CP Capital)
CrowdProperty charges borrowers arrangement fees of 1.5-3.0% and a lending margin of 1.5-2.5%pts p.a., with a cashflow structure that ensures stability in the unlikely case of needing to fund the wind-down of the loanbook. Loan economics are laid out transparently on our website statistics page.
By successfully building routes to market, we have received over 11,500 applications worth over £11bn with more than 13,000 registered developers. This builds market position and the potential for a large and profitable lending business with powerful economies of scale:
- Low cost of acquisition
- High customer lifetime value
- A market-leading developer database
- Closer and value-adding borrower due-diligence to select the right projects
- Tighter and value-adding monitoring to increase the success of projects
- Data/analytics advantage with machine learning models
- Long-term customer relationships to help grow and grow with
- Potential for many further monetisation opportunities
Use of proceeds
This country needs more homes while undersupply persists. We expect 12-24 months of less-competed opportunity to:
- Drive growth in our core and proven SME developer strategy
- Grow share of higher value lending as other funders retrench with poorly structured wholesale funding lines and higher barriers to entry
We believe we have a clear opportunity and a newly defined 3-year strategy to drive robust growth:
- Strong People & Culture – attracting ever deeper market expertise across all functions
- Scalable Systems & Processes – further developing our proprietary technology platform
- Robust Governance & Control – building deeper data/analytics/governance to underpin scaling
- Exceptional Customer Relationship Management – leveraging unique market reach and powerful unit economics
Equity capital raised, put alongside profits/cashflows from the operating business and working capital optimisation, means a smaller (and less dilutive) raise, with more invested in strategic growth, as we’ve proven before:
Crowd Property Limited is authorised and regulated by the Financial Conduct Authority (FCA) with permissions for operating an electronic system in relation to lending (FRN 723959)
Please note the business has the following outstanding debt. Funds raised as part of this round will not be used to repay this debt.
Repayment Plan - None
End Date - None
Outstanding Balance - £215,014.48
Interest - £5,250 fixed annual payment in March (3% of principal value of £175,000).
Bounce Back loan:
Repayment Plan – monthly repayments of £833.33 (not including interest) which start 13 months after the loan is paid into that account (June 2021) for 60 months.
End Date – 07/05/2026 (72 months from May 2020).
Outstanding Balance - £32,500
Interest – rate per annum (fixed) 2.5%
Please note the business has three share classes. Ordinary A and B have equal rights in all respects other than Ordinary B shares do not have voting rights. The third class are non-voting growth shares as part of the executive incentive package. Shares issued for this raise will be Ordinary A.
Investors in this round are investing into and will become shareholders of Crowd Property Limited (Company Number: 8764786). This is the holding company for the following subsidiaries:
Crowd Property Capital Limited (Company Number: 12860664) is 100% owned by Crowd Property Limited
FCA Regulatory Approval
Crowd Property Limited (CrowdProperty) is a company registered in the UK, with a registered office at 54 Hagley Road, Birmingham, West Midlands, England, B16 8PE, company number 08764786. CrowdProperty is authorised and regulated by the Financial Conduct Authority (FCA) with Financial Reference No 723959. The firm is authorised for specific activities and product types in relation to consumer credit, regulated under Article 36H to operate an electronic system in relation to lending.
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