The UK’s first crowdfunded PRS investment project has received overwhelming interest from investors, securing more than £2 million in less than two weeks.
Mill Group, which announced it will create a Reit to invest in private rented housing, says it has raised £2.1 million in just 12 days, exceeding its initial target for fundraising. Working with crowdfunding platform SyndicateRoom, it has attracted the funds from 49 private investors.
A further tranche of £0.5 million will be made available via the platform, recognising the strong demand. In addition, Mill Group will be tapping IFAs and institutional investors for share sales ahead of the group’s listing.
“We have been very pleased with the level of interest in our buy-to let REIT – the first time that people have been offered an easy way to invest in this popular asset class via a share that will shortly be listed on a UK stock exchange,” said David Toplas, chief executive of Mill Group Residential.
“At last people can invest in a buy-to-let investment that is suitable to put into your SIPP or ISA – but people will have to be quick to get into the IPO as it will be closing soon as we want to complete the listing process by Christmas.”
“Most people appreciate that residential investments have performed well, but have heard horror stories about tenants not paying, or worse, not looking after the property, and are very pleased to hear of a hassle free buy-to-let alternative to invest in a spread portfolio run by professionals.”
The fundraising was deliberately set up to encourage the smaller investor, with a minimum £1,000 commitment, but such is the level of interest that typical investments have averaged more than £15,000.
More about Mill Group’s plans to invest directly in private rented properties around the UK here.