Twino’s first real estate securities project already halfway funded

Twino has announced that its first real estate securities project is more than halfway funded, saying that it underlines the potential of the asset class.

The European peer-to-peer lending platform launched real estate securities earlier this month, enabling investors to diversify their portfolios by funding short-term rental properties.

The new product, which it calls RE Securities, invests in the acquisition of a property, with a view to generating rental income and benefitting from capital appreciation in the longer term.

Twino said its first project is a three-room apartment with a view of the Old Town Riga and river Daugava in a historic building, located in the centre of Riga.

The investment opportunity offers target returns ranging between six and eight per cent per annum, according to Twino’s website.

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“This achievement underlines the potential of short-term rental properties as a popular investment type,” said Twino.

Unlike Twino’s existing debt offering, real estate securities are an equity investment. Dividends will be paid out annually and any appreciation in value will be realised once the property is sold, which Twino anticipates to be within five to 10 years from purchase.

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Twino also announced that it has received repayments for two of the outstanding credit lines for the Hoffmann Rezidence development project, totalling €500,000 (£428,346). It has already distributed funds to investors’ Twino accounts.

The credit lines were facilitated under its sister company, Twino Ventures, which offers secured business loans.