CHF 2.8M fundraised on SwissLending in 2016

Established in May 2015, SwissLending is a crowdfunding platform connecting real-estate developers in need of funding for their projects with investors looking to invest their capital more effectively. The platform enables real estate projects progress thanks to the possibility to raise additional funds from investors on the platform.

This year, Swisslending reports to have successfully financed four real estate projects from Continental Europe including France, Luxembourg and Switzerland. The funds raised amount to CHF 2,875,000. The expected annual return to investors varies between 8% and 10% depending on the projects presented.

Real estate crowdfunding finances an activity with major economic and societal stakes – real estate promotion – often unknown to the public. The promoters are currently facing two major and recurring problems: longer product cycles (almost systematic recourse on building permits) and increasing capital requirements asked by their banking partners. These two phenomena cause the slowdown of development of new real estate operations. Crowdlending is the opportunity to address this downturn by offering developers additional funding complementary to the banks.

"This type of financing is favoured by investors seeking transparency and return in the current low rate environment. They can benefit from direct investment of their money in a specific project they have selected. Moreover, the remuneration proposed is well above the current rates for a measured risk," said Dominique Goy, president and co-founder of SwissLending.

The SwissLending, headed by Dominique Goy with his 17 years of experience in investment, is pleased with the 2016 figures and enthusiastically prepares for 2017. The growth of crowdlending platforms remains impressive. This growth could be accelerated by the specific regulations – the banking license “light”, the possibility to raise money from more than 20 people for a total amount of one million at most, among others – that may be set up by FINMA in the coming quarters.

Pic: Prinzip3d/Pixabay

(RAN)