Intro Crowd launches new way to invest in land development

27/04/2016

 

  • Investment strategy based on quantified need for 1 million new UK homes by 2020
  • First ever investment platform for strategic land

 

Intro Crowd today launches an innovative platform that allows investors to invest in land with potential for housing development. Investors have the chance to buy shares in companies owning the land for as little as £1,500.

Gregory Baker, Intro Crowd’s chief executive, says: “There are plenty of ways to invest in property, but our platform allows people to invest in strategic land, which are sites on the edges of towns and villages. The Government has pledged to build one million new homes over the next five years and the challenge is finding the land on which to build them. We believe our investors can make a contribution to reducing this shortfall.”

Intro Crowd identifies promising sites adjacent to existing settlements which are experiencing a high growth in population. The sites are then listed on the platform with site plans, a report and indication of future land value from chartered surveyors.

After the purchase of the site has been funded, investors hold shares in a company which owns the land proportional to the amount they put in. Intro Crowd then handle the planning application process and when the land is sold to a housing developer the net profits go to investors.

There is a transparent and simple fee structure:

• An investment fee of 2% plus a one-off management fee which will vary from site to site
• A success fee to Intro Crowd of 5% based on the gross proceeds of sale

Intro Crowd has already purchased its first land site to kick start the launch, a strategic land development at Cam, near Dursley in Gloucestershire. Additional sites to be funded by investors will be added to the platform over time.

Gregory Baker says: “This is an investment for ordinary retail investors as well as sophisticated and high net worth clients. It is an opportunity to diversify their portfolios into an alternative asset class. However because there is no guarantee that the land we purchase will secure planning permission, we make it absolutely clear that this should be considered a high risk, long term investment and that an individual’s capital will be at risk. It should form part of a well-balanced, well diversified portfolio.”

For more information:

Charles Ansdell/ Amy Williams, Redleaf: 0207 382 4747; introcrowd@redleafpr.com

 

Notes to Editors:

Strategic land refers to location, accessibility and potential.  Intro Crowd focuses on sites adjacent to existing settlements in areas that have experienced a high growth in population, because they have the potential for higher investment returns.