TAB launches fractional ownership product
Alternative lender TAB has expanded into equity investments with the launch of a fractional ownership product.
The platform has purchased two Travelodge hotels located in Chigwell and Snaresbrook for a total of £5m, from which investors will be able to earn returns from both rental income and capital growth.
TAB Property allows investors to commit as little as £1,000 to part-own property assets. TAB handles the property management and keeps a reserve fund to cover unforeseen costs such as maintenance and repairs.
The Travelodge hotels are expected to provide investors with a 7.62 per cent net yield, resulting in a total annual return of £462,000, with an additional 2.5 per cent projected capital growth.
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“As an advocate for democratising real estate investment, I’m excited to introduce our latest fractional ownership product, following our acquisition of Travelodge Hotels in Chigwell and Snaresbrook,” said Duncan Kreeger, chief executive and founder of TAB.
“Our platform empowers users to tailor their property ownership to meet specific goals, allowing them to diversify their investment portfolio. We’ve crafted an intuitive, user-friendly experience aimed at widening access to property investment, enabling more individuals to tap into the returns traditionally reserved for those with substantial capital.
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“Our experienced team is constantly looking for new investment opportunities, and these acquisitions are just the beginning for TAB Property.”
TAB has written over £400m in loans since launching in 2018 and expects to hit the £500m milestone next year.
