Proplend Ltd, the UK’s specialist in commercial property peer-to-peer lending and pioneer of the P2P Loan Tranche Model, are pleased to announce that they have reduced the minimum loan investment amount to £1,000 with immediate effect.
Proplend anticipates that the reduction from £5,000 to £1,000 will broaden their investor base through a lower entry level and enable existing investors to further diversify their investments on the platform.
To kick start the new £1,000 minimum investment, a limited number of £1,000 loan parts have been made immediately available on the Proplend Loan Exchange (PLE). Two of our previous loans, Newcastle Business Park and Croydon Office Block, offer investors returns from 5.93% to 9.75% pa (before fees, bad debts and taxes), across the three tranches. New loan investment opportunities will also be listed on the platform in the coming weeks.
Brian Bartaby, Founder & CEO, commented: “This change has been primarily driven by investor demand. We were being approached by lenders who were very attracted to the stable returns offered from investing in commercial property backed P2P loans through the Proplend platform, but who found the initial investment level of £5,000 too high. Separately, we were also conscious that looking forward to investing within an ISA wrapper, the £5,000 minimum investment level would not offer investors an acceptable level of portfolio diversification. We look forward to welcoming a broader base of investors to Proplend and will continue to offer them attractive rates of asset-backed, risk-adjusted returns.”
Moving forward, all new loans will be split into £1,000 loan parts. Investors can access attractive rates of risk-adjusted returns from as little as £1,000 and thereafter in £1,000 increments. The maximum investment in any particular loan is limited only by the amount remaining; loans vary in size, loan to value, term and location. Investors can choose, on a deal by deal basis, which loan to invest into and then which loan-to-value based tranche of that loan.