Grounds Investments debuts two new IFISA accounts
Real estate company Grounds Investments has entered the Innovative Finance ISA (IFISA) market with two new ISA-eligible accounts.
Grounds’ Classic IFISA is targeting a two-year fixed rate of three per cent; and the Grounds Extra IFISA offers returns of up to seven per cent as a fixed rate over five years.
In both accounts, interest is paid out quarterly, and in both cases there is a minimum initial investment of £5,000.
All funds held in the Grounds IFISAs are used by its parent company, The Grounds Real Estate Development AG, to invest in German property. Each loan is originated by established UK-based peer-to-peer lender Money&Co.
“We are lending to a UK company – Grounds Investments – which then makes these investments in Germany,” said Nicola Horlick, founder and chief executive of Money&Co. “They see a lot of opportunity in the residential market there.”
Horlick added that Brexit-related uncertainty has made the UK property market “quite volatile”, adding that “the German property market since the war has been very stable and has grown in a very measured way.”
The Grounds Real Estate Development AG has more than 12 years’ experience developing residential property in major German cities such as Hamburg and Berlin. It specialises in funding high-demand student accommodation and retirement property, as well as ‘pocket living’ studios.
Security is offered in the form of a first charge on the properties behind each loan, as well as a debenture in Grounds Investments itself.
Updated: Friday, March 15th, 2019