Shojin Property Partners has closed a £5 million underwriting facility.
The PropTech aims to lower the barriers to entry for individuals looking to access institutional-grade real estate investment opportunities.
Provided by a London-based family office, which has made provision to increase the facility to £10m as dealflow grows, the capital will enable Shojin to guarantee finance for new deals before launching them on its global investment platform.
This underwriting facility sits alongside Shojin Property Partners’ current Series A fundraise, which is due to complete shortly.
The company moved into profitability in 2020 having previously raised external funding of £1.7m from private investors and is on track to generate almost £2m in revenue in the year to June 2022.
Shojin was created to democratise the market by opening up investment opportunities to global investors on a fractional basis. Typically, such institutional-grade property deals are only accessible to the top 1% of the world’s adult population, who control 45% of global wealth. Shojin enables investors to access this market from as little as £5,000.
The underwriting facility will provide certainty to borrowers and investors, as real estate developers need the funds to be available on the day of completion for the underlying property or land.
“We are delighted that we now have access to further capital. Not only does this facility show the confidence our family office partners have in our investment platform, but it will help us provide more diverse investment opportunities for our investors,” said CEO Jatin Ondhia.
“As a FinTech startup that is already profitable, we look forward to offering more exciting projects for investors as we move to close out our Series A fundraise.”