Transcendent Real Estate, the UK’s first dedicated commercial property crowdfunding platform, launched this week with the announcement that it has secured its first deal to acquire a landmark commercial property in the centre of Manchester. We talked with director James Nichols about the quick success of the company and what's next.
The idea behind Transcendent is that small investors should be able to invest in big properties. With as little as £5k, an investor can buy a share in a building and receive an annual proportional dividend. It’s been done in residential real estate, James says, but the fact it is commercial real estate with direct equity makes the product unique.
James worked as a commercial real estate broker for 15 years. Transcendent Real Estate came about when he wanted to take part in some of the deals but didn’t have the resources to do so. It was an obvious jump to combine equity and gain access to investments that seemed out of reach when acting alone.
Investors agree there is promise in the idea. Earlier this week, the company’s first purchase went under offer. At the junction of Stephenson Square and Lever Street, 43-45 Lever St comprises 13k SF and is predominantly let to Whitecross Dental Surgeries, which trades as My Dentist, on a new 15-year lease, as well as Bakerie, one of the most popular restaurant and bar venues within the Northern Quarter. James paid £2.8M for the property.
He tells us he’s looking for good assets, good locations with good tenants. He has no desire for a huge splashy deal—small to moderate investments that bring consistent annual returns are what he’s looking for.
The company is now looking to buy a building in Sheffield. Once the idea has been proven to work in the North West, James says he sees some opportunity in expanding overseas.
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