A rental investment platform is claiming to have succeeded with the world’s largest property crowdfunding exercise, raising £2,992,800.
Property Partner says it will use the funds to purchase a purpose built student accommodation block in central Newcastle, which will then be let with profits going to shareholders in proportion to their stakes.
Property Partner says PBSA is the UK’s top performing property asset class, delivering average annual total returns of 11.8 per cent, substantially higher than mainstream residential (7.8 per cent) and commercial (7.4 per cent) in the past five years.
The dividend yield on the property stands at 6.13 per cent after all costs and fees, with strong total returns predicted over five years, when factoring in returns from rental income and any capital appreciation over that time period.
The block has 65 student studios over five storeys, well located for Newcastle University, Northumbria University and Newcastle Business School.
“To have achieved the UK’s largest ever property crowdfund is a proud moment for us, and a pivotal moment in the property investment space. It is no surprise that Purpose Built Student Accommodation is what has driven this interest given its strong performance in recent years, and being an asset class that traditional landlords have long been locked out of” claims David Gandesha, chief executive of Property Partner.