A Hackney developer says she has given her crowdfund investors the chance of an 85% profit

Matthias0815: Funday Entertainment-owned St Matthias youth club, 101 Dalston Lane E8 1NH, 280815 © DavidAltheer[at]gmai
Sold for £2.8 million: St Matthias youth club in Dalston
Nicole Bremner publicity pic
Bremner: crowdfunded Dalston scheme

WHEN the loan rate that guides UK lenders is 0.25%, a deal that offers investors a return of 10% is usually treated with great caution.

It is a credit to the marketing skills of  Nicole Bremner, one half of the Hackney property developer East Eight, that she is aiming to give investors a return of 85% on a Dalston scheme.

The crowdfunding scheme to put up four or five storeys for nine flats and some shops or offices on the site of a former youth club offered 280 shares at £5,000 each with the “projected return on investment 85%”.  And the offer, Bremner told Loving Dalston, had been fully taken up: £1.4 million had been raised. 

Asked whether a return of 85%, even as an estimate, wasn’t wildly optimistic at a time of interest rates below 10%, she pointed out that property investment was “highly speculative” but that with high risk “comes high returns”.

St Matthias youth club sign Dalston Ln Hackney E8 281116 © david.altheer[ at ] gmail.com
Several investors were interested in the club

She said: ”Our investors must acknowledge their understanding of the fact that they can lose all their capital by investing in this manner.

“This is a normal return for property developments which are highly speculative with no planning in place.”

An online blurb referred to house prices in Hackney having “outgrown every other area in the UK with an increase of 939% over the past 20 years”. It added: “Capital is at risk and returns are not guaranteed.” 

David Altheer 170717

Backstory: Squatters evicted from Dalston club; Developer submits plansBig property deal in DalstonFlats future for controversial Dalston club 

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