Money Portal has acquired a 7.8% stake in The Property Investment Market with the ability to increase its holding to up to 20%.
TPIM provides an internet based exchange which allows private investors to buy and sell shares in individual residential properties, just as they would currently trade shares in the stock market.
With a minimum investment of 1, TPIM aims to overcome many of the barriers that prevent entry to the property market, enabling investors to hold as diverse and as large a property portfolio as they choose.
Money Portal currently has over 1,200 independent financial advisers and a customer base of 600,000 with investments of approximately 8bn.
It is expected that the investment by Money Portal will bring significant additional volume to TPIM by raising awareness of the property exchange.
Stephen Kenny, chief executive of TPIM, says: I believe todays announcement to be a very significant step in our development, as we continue to build a highly liquid exchange which allows people to buy and sell equity in individual properties easily and cost effectively.
TPIM has already made very good progress, and Money Portals substantial distribution network and retail customer base will certainly accelerate this process.
Richard Craven, chief executive officer at Money Portal, adds: We are excited by the potential for this novel way of trading in the property investment sector and see huge opportunities for synergy between our distribution capability, the aspirations of our clients and the many financial planning possibilities opened up by means of TPIM.
The main challenge with anything new is to lift awareness and explain the benefits.
Property as an asset class is well understood by our IFAs who collectively advise on mortgage lending in excess of 6bn each year in addition to assisting their clients build well-balanced investment portfolios.