- Sourced Capital received FCA authorisation and acquired Peer Funding Limited earlier in the year
- Company has provided over £10 million of loans to property developers while maintaining a 100 per cent record on repayment to investors
Sourced Capital, a leading Warrington-based property investment platform and wholly owned subsidiary of the Sourced Group, has announced performance figures for the first half of 2022. The results include just six months’ trading since Sourced Capital received FCA direct authorisation and acquired Peer Funding Limited in February and demonstrate strong demand from investors and borrowers alike.
In the first half of the year, Sourced Capital has drawn seven new deals, providing £10.408 million of funding to support SME property developers, and helped deliver their projects located throughout mainland UK, including a £267,000 loan to convert a public house in Heywood, Greater Manchester, that was fully funded in just one minute.
Sourced Capital has also continued to demonstrate its strong credit management track record by maintaining 100 per cent repayment of all capital and interest to investors on non-active loans. Equally important when reviewing performance, moving into the second half of the year, none of the current loan book is in default or distress.
The company has seen the number of registered, qualifying investors surge threefold, with the increasing funding capabilities exemplified by Sourced Capital providing its largest loan to date – a £5 million loan for a landmark development project in Taunton. Strong appetite from investors to invest in property loans across the UK has led to some of the property loans funding in minutes.
The second half of 2022
Sourced Capital is set to surpass its projections for 2022 with a strong pipeline of new deals already in place. The company is continuing to grow the size of its team, including the recent appointment of two directors to support the growth of its qualified investor base.
As the fintech funding arm of Sourced Group, Sourced Capital provides asset-backed property development investment opportunities to sophisticated, high net worth (HNW), corporate and institutional investors. It will continue to increase the levels of funding for viable residential property developments in the UK, and with a focus on more sustainable housing.
Sourced Capital uniquely only funds property development projects from Sourced Franchise, its exclusive network of property developers, meaning all borrowers are directly connected to the Sourced Group.
Commenting Derek Pratt, Commercial Director at Sourced Capital, said: “After a strong start to the year, we are excited to be witnessing ongoing growth and we are very well positioned for the remainder of 2022 and beyond.
“We are seeing increasing investor and borrower demand, notwithstanding the economic uncertainties impacting the country. Sourced Capital benefits from a senior team with significant experience across the directly relevant sectors of property, finance and technology. This proven knowledge, when combined with rigorous due diligence and credit management processes, has enabled such a robust performance.”
Sophisticated, HNW and institutional investors are constantly looking for opportunities to diversify their investment portfolios, and this type of property investing is proving popular due to the returns that can be achieved.
This type of investment is not appropriate for everyone but considering the combined benefits of first-charge property security, the capability to use ISA allowances or pension funds for tax-free interest returns, and robust ongoing credit management, it is understandable why Sourced Capital is seeing increasing numbers of investors approaching them to establish a trading relationship.
