- The financial firm Fellow Funders has four divisions (Fair Value, Crowd Investment, Alternative Assets, and Capital Markets) to meet the financial needs of companies.
- The Fellow Funders Crowd Investment platform, authorized by the CNMV (Spanish National Securities Market Commission), is a benchmark in Spain and expands its offering with real estate investment projects.
- Fellow Funders launches its new Real Estate business line with an €870,000 crowdfunding for a house flipping project in the Madrid neighborhood of Delicias.
The new Fellow Funders Real Estate line will offer investors a much shorter-term return than investment projects in Startups.
Madrid, 8th April 2021 – The financial firm Fellow Funders has started the second quarter of 2021 with a new line in its commitment to alternative financing: investment in Real Estate.
Through its Equity Crowdfunding platform, authorized by the Spanish Securities and Exchange Commission (CNMV), Fellow Funders offers its investors the possibility of investing in a real estate project in the category of house flipping in the Madrid neighborhood of Delicias. House flipping consists of acquiring real estate (housing, premises, or industrial building) to be converted into housing and sold.
The ‘House Flipping Delicias’ project will be developed on commercial premises in a community of more than 200 neighbors on Embajadores street. The idea of Reaviva, the developer group, is to transform the premises into four homes and 36 storage rooms. While the storage rooms are expected to be purchased by the community residents, the apartments represent a valuable asset for investors who want to generate income by renting them out.
The Delicias house flipping project is an equity investment and offers its investors an estimated return of 22% within twelve months. The core novelty of the new Fellow Funders Real Estate line lies precisely here, as it offers investors returns in much shorter terms than the investment projects in Startups.
With its immersion in the Real Estate sector, Fellow Funders wants to keep its focus on other sectors that have brought it numerous successes in recent months, such as Biotech or sustainable mobility. The firm will keep its four movements (Crowd Investment, Fair Value, Capital Markets, and Alternative Assets) available to companies.
The new Real Estate business unit will be transversal to all these movements. Fellow Funders knows that traditional financing conditions have tightened in the real estate sector, and business models must adapt and evolve. ‘Today, in the real estate sector, alternative financing is not an option; it is a necessity,’ says Pablo Barriopedro, head of the company’s Real Estate Business Unit.
Barriopedro believes that ‘we are now at a time when there are investment opportunities in the real estate sector since an upward cycle is foreseeable after the coronavirus crisis.’. For this reason, Fellow Funders will continue to invest in real estate. From now until the end of the year, the firm expects to launch between three and five real estate projects similar to the Delicias project.
Fellow Funders is crystal clear about the type of projects it wants to finance. ‘We are looking for real estate projects with a balanced risk/return mix, both for developers and investors. We are looking for an investor profile interested in diversifying its alternative investment portfolio with real estate products,’ explains Barriopedro, who nevertheless recalls that through the Crowd Investment platform, investments can be made from 1,000 euros.
With its entry into the Real Estate sector, Fellow Funders maintains its dynamic growth and further diversifies its portfolio of investees, representing a positive move for its investors to diversify their investment portfolio. ‘Risk is something real that everyone must know and assume, but it can be mitigated through a diversified portfolio,’ says Barriopedro.
The firm plans to expand its Real Estate projects to other major Spanish cities, like Bilbao or Barcelona, and Europe.
About Fellow Funders
Fellow Funders is an independent firm committed to supporting SMEs and startups in their expansion and consolidation plans by finding the optimal financing model.
The Finance Symphony represents the harmony of four movements for entrepreneurs, managers, their companies, and investors: from the valuation of a company through Fair Value, through the financing rounds of the Crowd Investment platform, the strategic advice through Alternative Assets, and finally by accompanying its clients in their exits to the capital markets with its Capital Markets division.
These four movements are synergistic and harmonious. They work together to generate the same melody, offering their clients the services they need for their transformation, corporate growth, and internationalization. www.fellowfunders.finance
