Item: Upstone
Rating: 0.0
Author: Crowdinform

Upstone is a French real estate crowdfunding platform, launched in 2015, that offers retail and institutional investors the opportunity to invest in real estate projects, primarily through equity and debt instruments. The platform democratizes access to real estate investments with a low minimum investment threshold of €100. It focuses on commercial and residential projects across France, providing flexible investment options that span from 6 months to over 8 years. Upstone’s unique selling points include its focus on transparency, risk disclosure, and ease of use through its fully digital platform.
Upstone’s business model allows investors to fund real estate projects directly, earning returns through regular interest payments or capital gains. It does not offer an auto-invest tool or a secondary market for liquidity.

Basic information

145 projects funded

95000000.0 EUR funded amount

Licence/regulation: Upstone licensed under European Crowdfunding Service Providers (ECSP) regulation

For Investors

Minium investement: 100 EUR

trending_down Default Rate: 0%

Average Returns: 11.59% Weighted average annual rate

Useful Information

Investment Types on Upstone

Upstone offers two main types of investments:

Debt Investments: These involve lending to real estate developers for short to mid-term projects. Investors earn regular interest payments, with terms ranging from 6 months to several years.
Equity Investments: Investors can purchase shares in real estate projects, typically income-generating properties. Returns come in the form of dividends or capital gains, though these returns depend on property performance

How Does Upstone Work?

Upstone allows investors to participate in both equity and debt real estate investments. Through equity investments, investors can acquire shares in income-generating properties and earn dividends based on property performance. Debt investments, on the other hand, involve lending to real estate developers for fixed terms, with interest paid periodically.
Project owners can list their development projects on the platform, providing comprehensive financial details and project forecasts. Investors can choose projects based on their risk appetite, duration, and expected returns, all through a user-friendly online platform. However, investors should note that Upstone does not provide a secondary market, meaning investments are typically held until project completion

Risks of Investing on Upstone

Investing on Upstone carries risks commonly associated with real estate crowdfunding. For debt-based investments, the main risk is developer default, though Upstone has reported no defaults to date. However, investors must be cautious of potential project delays or restructuring, which could affect the timing of returns. For equity investments, risks include fluctuations in property values, lower-than-expected rental income, and market volatility, which can impact the overall performance of investments. Since there is no secondary market, liquidity is also a concern for investors looking for early exits