Peer-to-peer real estate marketplace raises $2.5 million for Port Melbourne development site

Peer-to-peer real estate marketplace raises $2.5 million for Port Melbourne development site
Peer-to-peer real estate marketplace raises $2.5 million for Port Melbourne development site

Proptech company Peer Estate has raised $2.5 million online for a development site in Port Melbourne.

There was no “offline” raising at all, Peer Estate said in a media release.  

Peer Estate, backed by real estate investment manager Qualitas, says it is Australia's first peer-to-peer real estate marketplace. 

It allows everyday investors to invest in major property deals, which is significant at a time when banks are cracking down on investor loans. 

Investors can put in as little as $5000, which is then combined with other investors and the pooled in funds are lent to owners and property developers. 

Investors earn returns through the interest they pay.

Peer Estate CEO and founder, Adam Broder, said he was surprised the investment offer was fully subscribed after just 2 hours of launch. 

“This validated our model and belief that investors are willing to transact in the peer-to-peer lending space, solely online,” he said.

“Our investors see the benefit of good risk adjusted returns being able to provide lowly leveraged loans into a sector that the banks find difficult.”

He said loans are approved within a week and underwritten for security.

“Whilst we are only open to Wholesale Investors, many of our investors do not have the access and ability to invest alongside Family Offices and Pension Funds in these traditionally private investment options. Peer Estate provides this access,” he said.

Features of the investment include, as per Peer Estate:

  •  First mortgage on inner Melbourne development site (Port Melbourne)
  •  10% interest net to investors paid monthly
  •  LVR of 60%
  •  Maximum term of 12 months
  •  Already underwritten and settled by Peer Estate
  •  Planning permit secured and in place
Tags: 
Lending Finance Online

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