A crowdfunding website that aims to create a “stock exchange” for small investors to bet on property prices has raised £16m to fund expansion overseas .
Property Partner, launched just over a year ago, lets consumers invest as little as £50 in buy-to-let flats and houses. Like owning a share in a company, investors receive a small stake in a property — as well as a share of the rental income. They are free to sell up, or increase their holdings, in the Property Partner online market. It already boasts more than 6,000 users, who have invested a total of £24m. The London company is raising the new cash from Index Ventures, Dawn Capital and Octopus Investments. Founder Daniel Gandesha, 33, will use the money to launch new services and expand internationally.
Property Partner selects properties and exchanges contracts before listing them on its site. Customers pay a one-off 2% fee on their investments, with Property Partner keeping 10.5% of any rental income . “Every month we revalue those properties and they can trade the shares,” said Gandesha. “Our vision is to build a global stock exchange for residential property.”