Property Development Funding Model — Built to Protect and Reward Investors

A Revolutionary Property Development Funding Model — Built to Protect and Reward Investors

A Revolutionary Property Development Funding Model — Built to Protect and Reward Investors

Our model was born out of necessity — in direct response to the failures and risks of traditional property development finance. We've created a debt-free structure that avoids legacy lender pitfalls while actively empowering investor capital security, transparency, and aligned upside potential.

Whether you're a traditional investor or seeking a Shariah-compliant route, Rise Capital offers a secure and ethical way to invest in UK property — with real safeguards, asset-backed protections, and no reliance on banks.

The Problem with Legacy Lender-Based Models

For years, developers and investors have suffered under the weight of traditional lending:

• Aggressive lender practices: Institutions like RBS (through GRG) used technical defaults and undervaluation tactics to seize control of development assets — often wiping out investor equity in the process.

• Receivership risks: Banks could appoint administrators or receivers without notice, forcing project fire-sales at below-market values, destroying developer reputations and investor returns.

• High-cost, rigid lending: Traditional development finance is layered with fees, restrictive covenants, and inflexible drawdown terms. Exit delays or minor breaches often trigger financial collapse.

These legacy issues eroded trust, stifled creativity, and left both developers and investors exposed to third-party control. Our model fixes that — and for Shariah investors, does so without interest (riba), speculation (gharar), or unethical exposure.

How Our Models Work

We’ve replaced institutional lenders with aligned private investors and offer two secure funding pathways — both structured to deliver strong returns with clear protections.

DFSIM – Debt-Free Syndicate Investment Model

• Covers up to 90% of project costs

• Fixed return of 10% p.a. paid on project exit

• Up to 10% equity participation in SPV profits

• 1st charge security + debenture over project assets

• Funds held in third-party escrow, released by Independent Monitoring Surveyor (IMS)

Shariah-Compliant Murabaha Model

• Also covers up to 90% of project costs

• Based on cost-plus trade agreement with SPV (not a loan)

• Pre-agreed halal profit, no riba or interest

• Certified by Khalij Group

• 1st charge and escrow structure identical to DFSIM

• Ideal for faith-based investors and Islamic trusts

Built-In Risk Mitigation: The Rental Conversion Mechanism

If units do not sell within 3 months of project completion:

• The syndicate capital transitions into a buy-to-let style mortgage (4% p.a.)

• A third-party mortgage refinance is used to repay DFSIM and Murabaha investors

• Rental income continues to be distributed until full exit

• Equity upside is preserved for all syndicate investors

This ensures no forced sales, no fire-sale pricing, and no institutional pressure — just a controlled, planned exit.

Why Investors Choose DFSIM, Murabaha, and Equity Models

DFSIM Investors

• 10% p.a. fixed return

• Priority capital repayment

• 1st charge security

• Equity upside bonus

• Hands-free, escrow-protected investing

Shariah Investors (Murabaha)

• Halal, asset-backed investment

• Certified riba-free profit agreement

• Same 1st charge + escrow security

• Fixed profit return, no speculation

• Compliant with Islamic finance standards

Equity Investors

• 10% of capital stack

• 40% of net development profits

• Higher risk/reward

• Shareholder control in SPV

Dual Investment Option

• Balance between fixed return and growth upside

• Diversify within the same project

• Align with values (faith-based or yield-driven)
  
  

Why This Model Outperforms Traditional Debt-Based Funding

In Summary

Rise Capital’s investment model is a direct answer to 30 years of broken finance. It offers:

• Security without reliance on banks

• Predictable returns without refinancing risks

• Faith-compliant options without compromise

• Transparent, escrow-managed capital protection

• Flexible exit paths with optional rental fallback

This is property development funding — rebuilt to protect, reward, and include all types of investors.

Whether you're a seasoned investor, a SSAS pension trustee, or a Shariah-conscious investor — Rise Capital is ready for you.