Vistafront, a Nigerian startup that allows users to co-fund real estate projects is the newest startup to raise funds to grow its business. Vistafront has secured funding from a traditional real estate investment company Landwey Investment.
Here Is The Deal
- The investment round was led by real estate investment firm Landwey which retains a 25 per cent ownership stake in the startup.
- The total amount of the funds raised was not disclosed but Landwey will also provide support and expertise to the Vistafront team.
- The new round of investment will help the company to grow its user base and list more projects.
“This is the start of an amazing partnership with Landwey,’’ said Vistafront managing director Segun Ajuwon. ”We are confident that with this partnership we will be able to feature more real estate projects on our technology platform and make them available for funding.”
Why Landwey Invested In The Startup
Landwey founder Olawale Ayilara said the investment was a bold move for his company, and a step in the right direction.
“We are always proud when we spot an opportunity for our clients and followers to be further involved in real estate projects that will give them the best returns for their money. We understand that we serve different people in our audience and this move is evidence that we fully support and encourage everyone to fund real estate projects on Vistafront,” Ayilara said.
What Vistafront Does
Using Vistafront, prospective investors can elect from various projects that have gone through rigorous vetting process before they are made available for funding. Investors can then fund as many units of a project as they want provided it is available. At the end of a project cycle, investors’ bank accounts will be credited with their initial fund and the returns. Units cost as little as NGN25,000 (US$70) each, with investors able to buy as many as they want and make returns of 12 per cent.
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As an example, Vistafront is currently raising funds on its platform for its Bloom 1 Project, which is a bridge financing for land acquisition for 14,000 square meters nested in the heart of Lekki Epe Expressway, Lagos State. With as low as N25,000 per unit, investors can fund as many units as they want and make up to 12 per cent in six months, Managing Director of Vistafront, Mr. Segun Ajuwon said.
“For every project we feature on the site, we also have in place a strict vetting process carried out by our in-house team and partners like Nachtwey Advisory Services Limited, a SEC registered Asset Management Company, Emerging Africa Capital Group, a licensed Trustee firm, and AXA Mansard, a trusted insurance company,’’ he said.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.