PropTech chief invests in ground-breaking private rental fund

A high profile PropTech entrepreneur is amongst a series of investors linked to a new fund, launched today, cashing in on the booming market in the private rental sector. 

Nigel Walley, founder and managing director of prop-tech platform Chimni - which offers digital profiles for homes - is described as a cornerstone investor in the fund, which is called Make To Rent.

Make To Rent claims that, notwithstanding current crises in the wider economy, it aims to achieve double digit returns for shareholders through development profit, asset appreciation and rental income, and is looking to raise £20m in its first cycle of investment-seeking.

The Make To Rent platform allows investors to subscribe for shares on a pipeline of rental projects ranging from traditional units to new Build To Rent schemes. 

Promotional information on the fund says: ”The buildings will include premium co-working space and other amenities, such as a gym or concierge, to capitalise on the growing demand for the live/work concept. Make To Rent uses bespoke technology to provide both investors and tenants with unrivalled transparency and customer service - delivering an innovative syndicated approach to real estate investment.”

It is seeking investors in the form of individuals, companies or trusts who are able to commit for up to five years.

Its pitch to investors says: “Since the start of the year, average monthly rents have grown by five per cent over the whole period , outperforming the FTSE Index by eight points, which has dropped by three per cent over the period. This is due to demand for rental properties out stripping supply - 70 per cent of first time buyers looking to buy their first home in the next 12 to 24 months are delaying purchases as the rising cost of living impacts their ability to save towards a deposit. However, the number of rental homes has almost halved since 2019, as landlords sell-off properties to avoid taxes and cash in on rising sales prices, reducing supply and causing rents to continue on their upward trajectory.”

Other investors joining Walley include Vinny Patel of Accenture and the Vice President of Barclays Wealth Management, Chris Ball.

Tim Peppiatt of investment nurturing consultancy Sturgeon Ventures - and the man behind the fund - says: “Technology is at the heart of this concept and will be a driving factor behind its success. We have built unique dashboards for both our investors and tenants, to ensure a seamless and transparent service, and the same systems are also used to identify our pipeline sites and the entire costing model around the purchase, build work, end value and yield. This allows us to bid with swift precision and certainty – maximising our returns for our investors.

“The rental market has remained a steadfast and strong investment, with rents at record highs, however, tax implications for smaller investors have made it more challenging to enter. Make To Rent solves this issue and also capitalises on the rising demand of young professionals to have dedicated and premium co-working space in their building.”