A new property investment platform has launched, after securing a key investment.
Lord Stanley Fink has invested £7m into British Pearl, which offers both debt and equity investments in individual property deals in one place. This enables people to split their investments between fractional equity ownership of property and to act as mortgage lenders in their own right.
Lord Fink was formerly the Conservative Party Treasurer as well as CEO and deputy chairman of investment management firm, Man Group. He will serve as non-executive director of British Pearl following the investment.
British Pearl has been created so investors can ‘earn like a bank’, with the ability to hold their investments in a tax-efficient ISA wrapper. Like high street mortgage lenders, British Pearl’s loan investments are ‘first charge’ secured, unlike many peer-to-peer loans. These loans are lower risk and pay a fixed interest rate every month.
The platform hopes to empower anyone to build a property portfolio online, and has launched with 3 investments made up of 6 residential units — in Acton, Portsmouth and Lancaster. More properties will be added in the weeks and months ahead and, in time, the company will extend its offering into commercial units.
British Pearl’s tax-free interest on UK property loans is currently running at up to 4.4% per year, after all fees.
Lord Fink commented: “I’m backing British Pearl and UK property for three reasons: first, the country is in desperate need of new homes, which the Government is working hard to provide, so the fundamentals are strong and the property market still presents many attractive opportunities. Second, property has been one of the most consistent, profitable and trusted asset classes in recent times and, third, British Pearl is not only making property investment accessible but giving people two different ways to invest in it through one platform.
“We know investors don’t always want all their money tied up in property equity investment, so we’re giving them the option to diversify their portfolio into debt within the same platform. My investment in British Pearl is my own personal vote of confidence.”
Ali Celiker, CEO & founder of British Pearl, added: “Our goal is to give investors the all-important choice as to how they invest in the properties they select, whether the reduced risk associated with conservative LTV property loans, the greater potential upside of equity stakes or a mixture of both. Ultimately, we’re empowering people to design and diversify their investment portfolios to suit their own specific needs and individual risk profiles.
“It’s important to note that the debt investments we offer are not bonds issued by a company but first charge loans secured against property — just like a mortgage from a high street bank. The fact our debt product can be held in a flexible ISA is something else we expect to drive considerable interest.”