Nabarro has advised Galliard Homes on arrangements for the launch of its new crowdfunding platform. For the first time, multiple investors can now collaborate to buy shares in a limited company which will own Galliard properties.

The new crowdfunding platform has been set up by The Property Club, a subsidiary of Galliard, and requires a minimum investment of £5000.

After signing up and being approved by The Property Club, investors choose which Galliard properties they wish to invest in and the amount they would like to commit. The number of shares they acquire in the relevant limited company relates directly to their share in the overall value of the properties.

Investors will earn 5% guaranteed interest until practical completion of the building. Following that, they will be entitled to share in the returns as dividends from rental income and capital appreciation once the property is sold. Subsequently, they will be able to sell their shares either on The Property Club’s online property market, or via the 5-yearly exit protection offered by the platform.

The Nabarro team was led by Head of Financial Services Regulatory, Sam Robinson assisted by associate Oliver Digby and Corporate partner John Finnemore.

Commenting on the launch, Sam Robinson said: “This is an exciting development in the crowdfunding industry as property developers look to the new, innovative model of crowdfunding to raise capital and seek investment in their property developments. We have really enjoyed working with Galliard on this important development in its business”.

David Hirschfield, Legal Director of Galliard Homes said: “Galliard Homes is a very innovative and forward thinking business, which is the reason we have embraced new technology and launched a crowdfunding platform. As investors are able to acquire a share in our properties, rather than a whole property, this allows investors the opportunity to invest where they may not have previously been able to do so. The Nabarro team is very experienced in FinTech and, in particular, crowdfunding, and we have been grateful for their help and support which has been excellent throughout this process.”