Within just over a year of announcing the first £1m had been invested through its platform, Brickowner has reached the milestone of raising £10m.
Funds invested via Brickowner’s business model of partnering with established property developers whose experience and track records provide more secure asset-backed investments across a broad range of property sectors helped achieved strong deal flows over 2018-2019.
Brickowner’s CEO Fredrick Bristol commented:
“Many people are familiar with the idea of homes as investments, but property as an investable asset class has for too long been unavailable to smaller investors.
“Using technology, we give investors efficient access to investments that were previously only available via institutions, creating new opportunities for investors and a new source of funding for property developers and asset managers.”
Technology means property developers can offer better service to their existing investors and Brickowner crowd investors can access investment opportunities. Brickowner’s platform is an example of FinTech solving real problems, making processes easier and more efficient by overcoming outdated investment models that have become an increasing burden to property developers and investors alike.
“In the past, too much of investors’ money went into covering the costs of middlemen, such as IFAs, banks and brokers. Brickowner’s tech disintermediates the investor process. This gives us a fundamental cost advantage, allowing higher returns for investors and lower costs for property managers.”
Brickowner timeline investments on the platform have also started to come to fruition with two now complete, both meeting projected returns.
“The Brickowner platform can support a full range of property sectors, including residential, commercial, hotels, industrial, and even a cemetery investment project. This allows investors to have greater diversification across their portfolios.”
With lowering returns on buy-to-let due to increasing regulation, and flat or decreasing property prices in some areas of the UK, Bristol observed:
“Investors have recognised the UK’s growing demand for currently undersupplied quality housing. This has made asset-backed property development and loan investments resilient to Brexit uncertainty and has ensured that good returns can still be met.”
This year, Brickowner will be raising a further equity round in its company, as well as launching several significant new products, including a secondary market and a newly designed site.
About the future of Brickowner, Bristol is optimistic:
“Brickowner is exceptionally well placed to serve the property investment market, given our fundamental understanding of property developer and investor needs. We act as a bridge between these parties. It’s my hope that Brickowner’s growth ensures high-quality, asset-backed investment opportunities for all in the rapidly expanding P2P and Fintech sectors that were in their infancy five years ago. We are witnessing a new era of property investment.”