Estateguru’s investors financed €44m of property projects in H1
Estateguru’s investors financed 269 different real estate projects in the first half of the year, totalling €44m (£38m).
“The volume of financing of new loans was at the level of €7-8m per month, and the total volume of the loan portfolio remained stable, close to €300m,” said Mihkel Stamm, chief executive of the European peer-to-peer property lending platform.
“The new investor registrations level has been outstanding, with over 5,000 investors joining the platform during this six-month period, leading to an impressive total investor count of 157,000.”
Read more: EstateGuru investors have earned €306k from secondary market sales
Investors’ accounts received €51m as repayments with an average interest rate of nine per cent.
“In the first half of the year, we saw renewed interest from investors, which is very important for us,” said Stamm. “A total of 55 per cent of all investments were made using our Auto Invest feature, which confirms that experienced investors maintain their trust in the quality of the projects we offer.”
According to Stamm, all parties have accepted the changes that have taken place in the real estate and financial fields over the past year.
“We have seen a rapidly growing interest from borrowers, which is largely driven by the significantly increased interest rates on development loans offered by banks, and this is coupled by the renewed desire of small investors to invest money in new projects,” said Stamm.
Read more: Estateguru volumes and returns recover in March
In response to the current macroeconomic climate, Estateguru has adjusted its strategy by focusing more on bridge lending with existing, performing borrowers.
The platform has taken a number of steps to improve credit quality, including higher valuation standards, more emphasis on repayment ability and borrower background, and the integration of Moody’s ratings into its models.
Read more: Estateguru gains pan-EU crowdfunding licence