"Röntgen" platform pays record interest to investors
Investors on the real estate crowdfunding platform "Röntgen" (UAB "Trecia diena") raised €28.5 million in the first half of this year, which is 20% more than during the same period last year. The platform also set half-year records for the amount of interest paid out to investors and the total sum of loans repaid.
Despite the housing market not yet recovering, Röntgen's platform, characterised by its conservative project selection and moderate interest rate strategy, started the year with even stronger growth. Since the beginning of the year, Röntgen has paid out EUR 3.8 million in interest to investors and repaid EUR 25 million in the nominal amount of previously pooled loans – both figures setting all-time records for the platform and closely matching last year‘s full-year results.
According to Greta Zarembiene, Partner and Head of Investor Relations at Röntgen, the growing operational volumes in a moderate economic and informational environment illustrate the trust that both investors and real estate developers place in the crowdfunding platform operator.
"Although there was some apprehension in the market at the start of the year, in recent months we've observed very positive investor sentiment – over 80% of our investors reinvest their funds, and the number of new investors is growing rapidly. At times, the demand for investment opportunities exceeds the supply of projects that meet our conservative risk criteria," commented G. Zarembiene.
She also noted that increasingly larger real estate developers are collaborating with the crowdfunding platform, which offers competitive terms and greater flexibility. Over the past year, Röntgen investors have contributed to financing several projects with a total value of tens of millions of euros, such as "Vilniaus Dziazas," "Kaip Niujorke by Citus", or "Juozapaviciaus 13" in Kaunas.
"We are currently actively working with dozens of property developers of different profiles. Property developers have been looking at crowdfunding as a standard and competitive source of capital for some time. For larger developers, we can offer speed and flexibility that is less common in traditional credit institutions, while smaller developers see our platform as a team of partners: together, we negotiate structures, finance, marketing, sales and other aspects of their business," says G. Zarembiene.
Earlier this year, the Bank of Lithuania also granted Röntgen Group a fund management licence. "Röntgen Asset Management (UAB "Ketvirta diena") is planning to launch several investment funds for informed investors in the near future. One of them, the Real Estate Development Fund, will offer financing opportunities for real estate projects larger than EUR 5 million.
The platform also plans to continue its activities in the strategic sector of aviation business financing this year, with a second fund planned by Röntgen Asset Management, in addition to the platform, offering investments in this industry.
Röntgen, which last year became the country's second-largest crowdfunding platform, currently manages the largest portfolio of assets on the market.
