Equity raise on Hythe Property Development project launched as a pilot to test and refine new method of funding for experienced property developer.
The recent launch of an equity crowdfunding campaign by seasoned property developer, MELT Homes is a prime example of how crowdfunding is now being used to fund property development projects.
Set up by Evan Maindonald, a New Zealander who has been living in the UK since 1992, MELT Homes undertook it’s first development in 2002. Over the last 15 years, MELT Homes has built it’s property development business using traditional sources of Senior and Mezzanine debt to fund it’s developments.
MELT Homes have chosen to fund ONE62, their development in Hythe, Kent, using this new funding method. They are planning to use this method of funding more widely in future in order to grow their property development business faster.
Returns for investors are profit based and are forecast to be around 30% over a 12 month period. A higher rate of return is being offered for investments of over £25,000. The total amount being raised is £150,000 and the minimum investment is £1,000.
Investors will be repaid from the proceeds of the sale of completed properties. Hythe is a local property hotspot where the market is very active and so MELT Homes expect to pre-sell the development prior to completion. Risks are low, as the sale of only one apartment will be required in order to fully repay investors.
Giovanni Scialo, Marketing Manager at MELT Homes said “We’re testing this as a new way of funding developments by opening the project’s funding to individual investors. If it works well on this project, we’ll use it to raise equity on other projects in order to enable us to grow our development business faster. It allows us to release cash from current development before they are completed so we can start other developments faster”.
MELT Homes are working with crowdfunding platform Simple Equity to fund the project. Simple Equity’s platform links smart property professionals to smart investors to deliver simple access to property crowdfunding and peer to peer lending.
ONE62 was designed by Guy Hollaway, a leading UK architectural firm whose main office is located locally in Hythe. The building is a bespoke contemporary design which includes six spacious high specification apartments which all feature balconies and/or outside space.
Works are due to start on site in October 2017 and be completed by August 2018. In order to minimise cost risk and ensure the project is completed to the specification and finish required to sell the completed properties quickly, a main contractor has been appointed on a Design and Build basis to complete the works.
About MELT Homes
MELT Homes is dedicated to creating exceptional, individually designed, contemporary new homes. The company is currently in the process of developing two sites, Lime Grove in Tuffley Gloucester and ONE62 in Hythe, Kent with other development due to come on stream in the near future.
Previous developments undertaken by MELT Homes include the Lock Warehouse in Gloucester Docks, the conversion of a Grade II listed former Victorian Grain Warehouse into 26 Apartments with Retail Space on the ground floor and Lords Gate, a development of 11 houses in Gloucestershire.
For more information regarding MELT Homes, please visit www.MeltHomes.co.uk.
Press Officer : Giovanni Scialo. Tel : +44-1233 809 002. Giovanni@MeltHomes.co.uk.