A new Irish online peer-to-peer crowdfunding platform that connects investors with experienced developers, has gone live with its first project, a plan to build a two-storey mews house in Sandycove, Co Dublin.
Property Bridges claims to be on “a mission to reshape property finance”. It is offering investors an opportunity to provide funds for the project.
Funds of €450,000 are being sought, with investors required to put in a minimum of €500 into the development. The loan will be raised in two tranches and the borrower will receive funds in two stages as the development progresses.
The loan is secured by the first legal charge against the development site and backers will get 9 per cent interest on their investment.
Construction is expected to take eight months. The estimated value of the completed project is about €850,000.
Property Bridges, which is based at the NDRC in Dublin, was established by David Jelly with an aim to “unlock the property market for investors and provide a major source of non-bank finance to the construction sector”.
So far, 300 investors have signed up to Property Bridges and the company is looking to partner with an institutional investor and to hire staff with property-lending experience.
Property Bridges makes its money by charging developers an arrangement fee based on a percentage of the total loan size.
Mr Jelly said the 115sq m (1,242 sq ft) property will likely appeal to an elderly couple who are looking to downsize into a property that is more manageable.
He added that, with Daft.ie reporting that Sandycove is the most expensive market in the country, it is likely the completed house will sell quickly.