You could lose all your money invested in this product.
This is a high-risk investment and is much riskier than a savings account.
ISA eligibility does not guarantee returns or protect you from losses.


Designer's impression of the property and interior
of a previous project by the developer

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Investment Summary

  • Overview – This investment provides investors access to finance for the development of a new high specification apartment building in the Hertfordshire town of Radlett.
  • Properties – Investors will be providing finance to a developer who is acquiring a large detached house within c. 0.6 acres. The developer will demolish the existing dwelling and replace it with 10 purpose built luxury apartments in accordance with the full planning permission that has been obtained.
  • Developer – This highly experienced award-winning developer has an impressive track record having completed 17 projects. They specialise in Radlett and the surrounding the area developing high specification family homes and apartments.
  • Plan – The borrower has acquired the site, demolished the existing property and commenced groundworks. The development is scheduled to be completed late 2020.
  • Security – Investors will benefit from a first legal charge over the property. In the event of a forced sale of the property CapitalRise investors would recover their investment first. The value of the property would have to be 33.3% less than the anticipated gross development value for investor capital and accrued returns to be at risk. The borrower has also provided a personal guarantee up to 20% of the total loan value. 
  • Sales price – Strutt & Parker have provided an independent Red Book Valuation of £12.1 million upon completion of the development.
  • Exit plan –  Local agents have indicated there is high demand for housing of this nature, particularly amongst individuals and couples looking to downsize. A six months sales period is included within the term of the loan upon completion of the development. Should the borrower not achieve a sufficient number of sales within the term of the loan to repay CapitalRise investors they will have the option to refinance their loan. CapitalRise has already had indications from another borrower that they would finance a Sales Period Loan but of course this is not guaranteed.