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London Based Property Crowdfunding Company Celebrates One Year Anniversary
By: Gareth Bain
In the last year, Shojin's crowdfunding platform has raised over £3m across 5 projects throughout the UK. Jatin Ondhia, CEO of Shojin said "Our intention was always to bring quality, institutional grade property investment projects to a broader market. We are the only platform to operate across the property investment spectrum and our clients have always appreciated the variety we provide as well as the depth of due diligence we carry out."
Since launching online, the company has crowdfunded £1.5m in equity for the development of 18 flats in North London, as well as £381,000 in equity for the development of 49 apartments in Southend with a targeted return of 26% annualised. The further £1.1m has been spread across mezzanine loans and bridge loans.
These comprised of a £230,000 fixed term investment project in London with a 15% annualised return, a refurbishment project in Hampshire which for £190,000 which was fully funded in 5 days and aims to give investors an 8% annualised return as well as a student accommodation development in Nottingham worth £701,000 and an expected return of 15% annualised return.
Shojin are currently offering investors the opportunity to invest in a newly-built, fully let student accommodation development in Nottingham.
In a low interest rate environment, investors have naturally been attracted by the high returns Shojin targets. However more importantly, the online platform enables investors to put their money directly into projects of their choosing and keeping more of the returns compared to traditional investment funds. Furthermore, earlier this year Shojin became an ISA manager which enables investors to take advantage of their annual £20,000 tax-free investment allowance.
Ondhia said, "Coming from an Investment Banking background, I wanted to create products that suit the needs of individual investors, rather than shoe-horning investors into a standardised product.
To that end, we launched a series of mini-bonds designed to provide investors with monthly or annual fixed returns over varying time-frames. These make it simpler for investors to put their money to work without having to choose individual projects to invest in."
Since September 2017, Shojin has seen its database continually grow with 55% of its investors coming from the UK and 45% coming from overseas markets. With the cooling of the UK property market and the weakening currency, the UK property market has become an attractive country for overseas investors.
Ondhia said, "We offer investors from around the world the opportunity to invest into the UK property market from as little as £5,000. With the growing middle classes across the world, this enables them to invest internationally in the same way that the wealthy have been doing for a long time".
With property prices rising and the younger generation struggling to get on the property ladder, a large proportion of millennials have turned to crowdfunding to invest in property with around 23% of the investor network being under the age of 32 years old and the youngest investor being just 18 years old. The largest investor contingent was those younger than 47 years old and counted for around 40% of the investor database with an average investment value of £38,000. "In a relatively short period of time, we have managed to gain the trust of investors resulting in 18% of our database reinvesting in two or more investment opportunities"
"I think what sets us apart from our competition is that we align our interests with those of our investors – we co-invest in every deal without charging any hefty upfront fees or management fees. We make money by sharing profits at the end. If our investors don't make money, then we don't make money."
The future looks bright for Shojin with the imminent launch of its secondary market, allowing property investors the ability to buy, sell and trade their investments at any point. This gives investors liquidity with their investments and the ability to buy in an out at any stage.
"Our goal is to disrupt the property investment market and make property investment accessible to all. We want to help more and more people invest in property without having to have large sums of money." If you would like to find out more information about the future of Shojin Property Partners visit www.shojin.co.uk