HAB Land has announced that its mini-bond fundraising product has exceeded all expectations by raising £2.432million with 282 investors, far beyond its original £1million target.
Part of HAB Housing, HAB Land launched the product earlier this year as an alternative way to equity fund land acquisition for HAB Housing, including custom build sites, as reported recently in Custom Build Strategy.
Discussing the alternative route to finance, Simon McWirter, Head of Communication and Sales at HAB Housing commented: “Banks can provide the debt needed to bring on schemes, and we already have arrangements with major banks such as the HCA and Lloyds.
“But we need to raise equity finance for schemes in addition to this, typically 20-40% of the scheme cost. This equity investment could come from institutional investors and funds, however we’re keen to engage with wider communities in all we do, and this includes financing.”