Crowdfunding platform Property Partner has purchased 42 flats from a converted mill in Lincolnshire.
The Sandars Maltings building in Gainsborough was valued at £1.95m but purchased for £1.82m, with the purchase including the entire freehold. The purchase of the block is 60% mortgaged, with the further 40% being crowdfunded with a target of over £840,000.
The total rent forecasted for all 42 flats is in the region of £190,000 a year, which would bring Property Partner’s investors a 5.9% return.
Currently 35 homes already have tenants, while the remaining seven are currently being marketed and are expected to be income-generating within four weeks.
Dan Gandesha, chief executive of Property Partner, said: “This purchase of a block of 42 flats sums up our future ambitions. Normally, only institutions, private equity houses and hedge funds would stand a chance of investing in a bulk-buy like this and building up a sizeable property portfolio.
“But now anyone can invest in blocks of properties for as little or as much as they like. This is bringing power and choice to smaller investors. And this particular opportunity offers an attractive net yield and immediate capital uplift for investors.”