Founded in 2019 by a team of veterans from the investment banking, IT and legal industries, PropCap is the first cross-border mortgage match-lending platform in Asia.
In the UK, Japan and Australia, the traditionally popular destinations for real estate investments, PropCap is expanding its reach of mortgage funders while helping overseas property buyers who face obstacles in mortgage applications.
The company enables easier and smarter global property mortgages for buyers, while offering favourable investment alternatives for professional investors (mortgage funders verified by PropCap) who seek to diversify their portfolios with more stable and relatively higher returns at a lower risk, enabled by its AI-powered lending and analytics platform. The birth of PropCap well fills the gap under the backdrop of a slowing global economy and political turmoils, where investors are eagerly navigating their ways to best allocate funds for more stable returns with lowered risks.
Securities of Mortgage Funders
To date, PropCap has processed a total of 15 cross-border mortgage deals valued over US$5 million for mortgage funders and borrowers since March 2021, when PropCap’s product and technology innovation was officially finalised and introduced to the market. The average interest return for mortgage funders is 7.5% p.a., and the average return period is 21-month.
A growing number of professional investors start to eye on this alternative investment tool to become mortgage funders because of the relatively more stable property market condition, lower threshold than direct property investment, and higher returns than renting. In addition, PropCap lowers the risk for mortgage funders with its collateral policy and stringent compliance standard in multiple jurisdictions, as well as its innovative technology that offers transparent know your customer (KYC) procedures and real-time property valuation. PropCap also works closely with an extensive overseas partner network to ensure first-hand local insights and smooth project delivery, ranging from solicitor firms such as Healys LLP and Carter Lemon Camerons LLP, property agencies such as CBRE, to letting agencies like Complete RPI.
Future Market Expansion
Neo Cheung, Co-founder and CEO of PropCap, shares his views about the company’s strategic expansion plan, “PropCap selects and targets operating markets geostrategically. We have built solid grounds of mortgage financing solutions for borrowers who invest in the UK and Japan property markets. The latest strategic expansion in Japan, development in local business, and initiation of mortgage markets exploration in Australia and the Greater Bay Area marks the company’s maturing and strengthened two-way business model that is poised to broaden mortgage funders’ investment alternatives.”
Due to current epidemic, China’s economic growth slowed and reduced investment return has impacted more Chinese investors to consider investing in overseas properties. PropCap aims to fulfils mortgage needs and become the preferred gateway for Chinese overseas property buyers.
In April 2022, PropCap successfully joined the Greater Bay Area Cross-border Data Mutual Recognition Platform, which is primarily operated by Nova Credit, a consumer credit bureau that connects consumers and lenders with data and analytics. Participation in the Platform enables PropCap to conduct more effective and trustworthy KYC procedures towards mainland Chinese customers.
Leading in Overseas Property Mortgage
Where PropCap is specialised in – a niche model that bridges and connects mortage funders and buyers, there is no direct or similar player readily available for the solutions and services provided by this FinTech startup who had recently been awarded the “Top 100 of Jumpstarter 2022” by Alibaba Entrepreneurs Fund, world’s largest startup contest.
According to a recent paper jointly issued by the Alternative Investment Management Association and PwC, the growth of private credit globally presents a significant opportunity for Hong Kong. Furthermore, the city’s proximity to mainland China and the increasing receptiveness from both regulators and traditional investors are important stimulus to technological innovation for the private credit sector, which will significantly accelerate PropCap’s growth and global expansion.
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