A new initiative to pump more money into house building has been created through a crowdfunding platform, writes property developer Richard Carr.
Poole-based developer Richard Carr has been turning plans into reality for the past three decades and recently gained approval on one his biggest projects. A £100m redevelopment of Salterns Marina hotel and harbour in Poole was approved by the local council, which will revitalise the area.
Richard is pleased to see a new way to encourage investors into the market through Intro Crowd, which offers investors the chance to buy a stake in potential housing development sites.
Investors can buy shares in companies owning the land plots for as little as £1,500.
Intro Crowd is a start-up business which will target promising development sites, next to existing settlement areas in fast-growing populations.
Investors will be able to access the platform and see site plans, a report and an indication of the future land value from chartered surveyors.
Gregory Baker, Intro Crowd’s chief executive, said: “The government has pledged to build one million new homes over the next five years and the challenge is finding the land on which to build them. We believe our investors can make a contribution to reducing this shortfall.
“There are plenty of ways to invest in property, but our platform allows people to invest in strategic land, which are sites on the edges of towns and villages.”
Investors hold shares in the company that owns the development land and will receive a share of the net profits once the plot has been sold. Intro Crowd has already made its first purchase of a site in Cam, near Dursley in Gloucestershire.
Baker said: “This is an investment for ordinary retail investors as well as sophisticated and high-net worth clients. It is an opportunity to diversify their portfolios into an alternative asset class.
“However because there is no guarantee that the land we purchase will secure planning permission, we make it absolutely clear that this should be considered a high risk, long-term investment and that an individual’s capital will be at risk. It should form part of a well-balanced, well diversified portfolio.”