Proplend’s P2P commercial property platform approved for pension funds
Proplend, the niche P2P business lending platform that focuses on income earning commercial property, has recently been approved by pension providers to accept investments from holders of Self-Invested Pension Plans (SIPPs), Small Self-Administered Schemes (SSASs) and other pension funds.
Pension fund investors will, in future, have access to a new asset form and at the same time benefit from the interest earned from loans arranged through the Proplend platform, which will accumulate free of Income Tax.
To safeguard pension holders’ interests and help them make the right decisions to suit their own personal circumstances, Proplend has partnered with SIPPclub, a firm specialising in SIPPs and SSASs.
“This represents a significant breakthrough for Proplend”, said founder and CEO Brian Bartaby. “Pension investors who have historically been able to invest directly in commercial property, will now be able to benefit from the relatively high returns offered by lending to the owner of a commercial property without being taxed. It moves the pension investment lower down the capital structure from being an equity investment, higher risk, to being a debt provider, lower risk. It also opens the way for much-needed funding to reach the commercial property sector. ”
Formed in 2013, Proplend offers above-average returns arranged in three tiers according to the position taken, and therefore perceived risk, in each separate loan. Estimated fixed rate returns can range from 5 per cent to 15 per cent per annum after all fees and default rates have been taken into account. The minimum investment per loan is £5,000.
In the event of a default, all loans are secured by a first legal charge over the underlying property. Proplend also creates a reserve for each loan to cover six months’ interest payments.
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Notes to Editors
• The Proplend platform acts as a conduit between Lenders and Borrowers, allowing Lenders to circumvent the traditional banking system and lend directly to Borrowers.
• Proplend is niche P2P platform that requires borrowers to pledge the most traditional form of security: a 1st legal charge over an income producing commercial property. The charge is legally documented and registered at the Land Registry.
• The rent the tenant pays the owner of the commercial property (the borrower) provides the income to cover the interest to the lenders: it’s very simple and transparent.
• To help lenders further manage their risk, Proplend splits the loan into three and lenders can choose which part of the loan to participate in. The nearer the loan part is to the maximum loan to value of 75% of the full value of the property, the higher the interest rate the lender earns. This allows lenders with differing risk appetites and return requirements to participate in the same loan.
For further information, please contact Brian Bartaby, CEO Proplend, Tel: 020 3397 8290, Email: bb@proplend.com
OR Brian Bennis, SIPPclub, Tel: 0845 056 8734 https://www.sippclub.com/proplend/
OR Keith Lewis, The Marketing Eye, Tel: 01825 765617, Email: keith@themarketingeye.com