How the money from your P2P investment is being used to support British pubs
In late 2017 Crowdstacker launched the Authentic Alehouses Loans, offering the chance for P2P investors to support a great British business and a uniquely British way of life.
The early success of Authentic Alehouses has been impressive. Authentic Alehouses has purchased a total of six pubs with the money raised. Out of these, four have already been refurbished and are operating. The remaining two are currently in the final stages of refurbishment.
The four pubs that are operating are either surpassing or trading in line with the financial forecasts anticipated prior to purchase, indicating that the business model is working well. It also demonstrates that a local pub can be brought back to life and again play a central role in the community.
By December 2017, Authentic Alehouses had raised just over £4 million via the Crowdstacker peer to peer platform. As part of the security package for Crowdstacker investors, Authentic Alehouses must themselves fund the first 30% of each property purchase to give a 70% LTV. Through the six property purchases, the Authentic Alehouses management team have invested approximately £1.2m into the business.
The gross assets of Authentic Alehouses as per the management accounts at 31st December 2017, exceeded £6.5 million. The Crowdstacker investment is currently just under 68% LTV when compared to the company’s gross assets, which is excellent in terms of the security for investors.
Extending the target raise from peer to peer investors to £10m
As we approach the Spring, we are pleased to announce the campaign will be extending its target raise from £5m to £10m. The additional funds will be used to continue to purchase and refurbish further pubs and continue to help contribute to the continuance of UK pubs in local communities, giving people a place to connect as well as creating UK employment.
Alan Harper, CEO of Authentic Alehouses explains the benefit to the UK economy of the Authentic Alehouses raise. “Through the purchase, refurbishment and running of each pub,we have so far worked with over 10 different sectors including estate agents, carpenters, building contractors, plumbers,electricians, decorators, plasterers, interior designers, food and beverage providers and micro breweries, as well as providing direct employment for around 20 part time or full time staff within each of the establishments. Working with local tradespeople helps to stimulate the economy, which is especially important when it is at a local level, such as tendering work to local tradespeople and businesses who provide services to us.”
Crowdstacker’s Karteek Patel explains further: “For us at Crowdstacker, it is great to be able to offer a real tangible social and community benefit to the UK economy through the money we raise on the platform. The refurbishment and operation of these pubs has enabled and created employment in Britain and given a heart back to towns where families appreciate a place to gather, socialise or enjoy a nice meal. On the other side of the coin, we have been able to offer our investors inflation beating fixed-income returns with a strong security package and the chance to lend to a growing and profitable British business such as Authentic Alehouses.”
As with all investing, your capital is at risk if you lend to businesses.