logo-loader

New online platform, Propio looking to “democratise property investment” with returns of up to 20%

Published: 14:27 25 Jun 2018 BST

Property investing
The straight-forward Propio platform allows users to log in and allocate money either to specific projects or to a selection of pooled bonds

One of London’s leading high-end residential companies is looking to “democratise property investment” with the launch last week of a new online property investment platform offering returns of up to 20% for investors.

The Propio platform’s founders hope to attract investments from everyone from high net worth individuals to pensioners and tech-savvy millennials.

READ: Three property portals the golden scenario for website group OnTheMarket

They said the low £1,000 investment entry point should appeal to those who until recently would not have been able to directly invest in property.

There are also a range of debt and equity opportunities all linked to property development.

In a statement with the launch, Parul Scampion, co-founder of Propio, commented: “Our ambition is to democratise property investment, demystifying the development process so that retail investors of all backgrounds can access the sorts of returns previously only available to the financial elite.”

She said: “With the bombshell of tax hikes buy-to-let investors now face, we’re hoping to offer far better returns with a greater level of transparency on the fees charged.”

Scampion added: “We are also planning on launching an ISA product in the autumn which makes it even more tax efficient as there would be no tax to pay whatsoever on any returns. Best of all the earnings can be recycled and reinvested.”

Straight-forward platform

The straight-forward Propio platform allows users to log in and allocate money either to specific projects or to a selection of pooled bonds which invest in multiple opportunities.

The website includes in-depth information about the opportunities, complete with independent valuation information and an explanation of the project’s timeline.

Propio secures exclusive property investment opportunities, which meet its strict investment criteria, through an extensive network of investment and property contacts.

The company uses the latest industry research to seek out attractive property opportunities throughout the UK.

Investors get their cash back when loans are repaid, or developments are sold, with the duration depending on the type of project and on whether investors have taken a debt or equity stake.

Returns more predictable

As Propio focuses on developments that have already obtained planning permission, delays are less likely and returns are more predictable.

Taking an equity stake in a project – the highest risk option – could potentially earn a return of up to 15%-20% per year.

However, equity holders are always the last to be repaid, which is why returns are highest. Debt investments – where money is lent to developers but secured against the asset – typically return around 8%.

This type of return is also substantially higher than those offered by traditional property funds - which typically seek an income yield around 4% with the rest made up by capital growth.

Road-tested

The company pointed out that Propio has been road-tested over the past year by an expert team of developers responsible for more than half a billion pounds worth of property.

The group said it plans to be more open – and far more competitive – than rivals who often deduct a multitude of fees for transactions and management.

Its directors have also put their money where their mouth is, and to-date have invested their own cash into every single opportunity listed on the site.

Co-founder Scampion said: “Of course, development is more risky than keeping cash under the bed, but with returns up to 20%, there is potential to tap into far greater returns than many other platforms offer.”

Oriole Resources outlines 2023 achievements and future exploration plans

Oriole Resources PLC (AIM:ORR) CEO Tim Livesey and chief financial officer Bob Smeeton join Proactive's Stephen Gunnion with details of the company's 2023 financial and operational performance. Livesey highlighted successful exploration programs in Cameroon, at the Bibemi and Mbe projects,...

2 hours, 48 minutes ago