A PROPERTY investment company is trying to raise £5million to fund the conversion of a former Taunton office block into 55 self-contained apartments.

Sourced Capital wants the cash to plough into the project at 1 Tangier Central, based in a gated community that features several other offices, including the County Gazette's base.

The company says it is its largest development opportunity to date, with the target interest rate return to qualifying Peer to Peer lenders set at 12 per cent for investments over £20,000.

The loan has a term of 18 months, with a loan to gross development of 67 per cent.

The company has to inform potential investors there is a risk of loss of capital.

Sourced Capital commercial director Derek Pratt, said 1 Tangier Central is "in a highly desirable area where planning permission for residential development is notoriously hard to secure".

He added: "With strong demand demonstrated from both established and new investors, we are very aware that many of our registered investors were unable to participate in the most recent loans presented to the platform due to the speed the opportunity was filled.

“We are, therefore, delighted to be able to launch this new investment opportunity so soon after the last project and pleased that this will give more of our qualified investors the chance to back this increasingly popular asset class.

"Over recent months, demand has been growing steadily to the point where we have funded deals in under a minute.

"So this next loan will help satisfy that growing demand from investors who are looking for rates of return that are capable of staying ahead of the rapidly increasing inflation rates.”

Mr Pratt said investors have achieved an average return approaching 12 per cent per annum and, to date, there have been no losses on any loans, with 100 per cent of all capital and all interest due returned to investors on loans which are no longer active.

Peer to Peer lending is not a suitable investment for everyone and all investors on the Sourced Capital platform will need to demonstrate appropriateness.

Peer to Peer investments do not have protection from the Financial Services Compensation Scheme, so there is a risk of loss to investors’ capital, even with the loans benefitting from security. The regulatory warning states that past performance cannot be assumed to be a definite indicator of future returns.