The financial firm is launching a new line of real estate business with crowdfunding of 870,000 euros for a House Flipping project in the Madrid neighborhood of Delicias.
Real estate alternative financing has added a new player. The financial firm, Fellow Funders, has created a new crowdfunding business line for real estate. According to what Pablo Barriopedro, head of the business unit, explained to EjePrime, the firm has launched its first project in the Madrid neighborhood of Delicias.
Fellow Funders is launching the financing of real estate projects through its Equity Crowdfunding platform, authorized by the CNMV (Spanish Securities and Exchange Commission). Currently, the company’s real estate division comprises three professionals, as well as the financial area of the group.
The first project, with a required investment of 870,000 euros, sets the roadmap for one of the division’s lines of business: the refurbishment of commercial or industrial spaces into housing. The company eventually plans to enter the development business, a step they expect to take between the end of the year and the beginning of 2022.
“We are targeting small and medium-sized developers who are struggling to obtain bank financing,” notes Barriopedro. “We are at a time where investment opportunities are available in the real estate sector, as a bullish cycle is foreseeable after the coronavirus crisis,” adds the executive.
Other media that have echoed the news: Idealista, El Referente, Murcia.com, Capital Riesgo