The Launch of the UK’s first Islamic finance compliant, peer-to-peer investment platform is set to provide fresh investment and real estate financing opportunities to communities, who have historically had a lack of financial products available. Nester aims to do this in a transparent, competitive, and timely manner.

Nester has two core offerings, an investment product aiming to deliver favourable returns to investors and a real estate financing solution for property buyers seeking finance for development projects, commercial buy-to-lets and bridging at competitive rates.

The traditional banking model of fractional reserve banking has not materially changed for some 150 years. Challenger banks have entered the market to start to introduce technology, improving the experience of customers with transparency and speed, but innovation is still needed and Nester aims to push this further in an inclusive manner for all communities. Investors and savers have historically resorted to depositing funds with a bank as the simple option of earning a return on their investment, albeit earning very little.

Nester believes empowering its community of customers with knowledge of its investment products will allow investors to consider its fixed income investments secured on real estate in the UK, as a viable alternative to improve returns on customers savings. For some, this is the only option available where investment products don’t exist and these communities, that have been financially excluded, will benefit from the Nester solution.

The Nester solution facilitates real estate financing and investment in a transparent, ethical and fair manner. Moreover, the shift towards a more technologically literate population and a broader offering from new tech startups has seen peer to peer and other break out sectors offer new opportunities to investors. Nester adds to this with a product that is available for all.

Who is Nester?

Nester introduces an innovative, ethical and digital alternative to legacy banking. The new technology empowered platform provides competitive and simple financing for borrowers, whilst providing an opportunity for investors that wish to support individual development or investment projects. Investors will have the opportunity to have significant reliable returns, secured by a first charge on the property asset itself.

Nester has completed a significant pre-series A equity raise from multiple highly regarded investors to support an innovative invest/borrow approach via a bespoke software platform developed by the Nester team over the past three years.

Founded on a culture of ethics, trust and transparency, Nester is the democratisation of real estate financing benefiting all property investors seeking finance, not just the ultra-wealthy. The Islamic finance compliant peer-to-peer platform allows borrowers direct access to bridging, refurbishment and property development financing options.

How do they work?

Investors provide capital investment to borrowers by investing in the financings directly, while their investment is secured on the underlying property asset(s). The transactions are sourced by Nester who in turn carefully screen and underwrite each deal themselves before offering the opportunity to investors. Nester is authorised and regulated by the Financial Conduct Authority (FCA) and ensures complete transparency and adherence to comprehensive risk mitigation to protect its customers.

Nester has approved over £4million worth of borrowing which will be soon be available to Investors on the Nester platform. There are a number of additional transactions in the pipeline across the UK which are set to generate returns in excess of 6.0% per annum.

Who is behind Nester?

Heading up the Nester business day to day is Co-Founder and CEO:

Youness Abidou – An accountant by qualification and formerly Senior Relationship Manager at Bank ABC, VP of Real Estate Structured Finance at Gatehouse Bank PLC and Islamic Finance specialist.

‘Nester takes a rather different approach and aims to provide favourable investor returns on a monthly basis whilst also facilitating access to financing for SME borrowers, all in relation to customers that were previously excluded from financial products. It’s a simple, efficient platform led process using our own credit risk scoring algorithm led technology, with rigorous due diligence carried out by experts and all secured on the property assets themselves’.

‘We have assembled a star-chamber of talent and investment to support the Nester business who all hail from the very top levels of global finance – indicative of the strength of our product and of our team. I’m humbled to be part of such a collective of like-minded, highly respected professionals as we strive to challenge and democratise real estate financing and the Islamic Finance industry.”

And the notable individuals supporting the Nester business:

Mohammed Paracha – Co-Founder

Senior lawyer and Islamic Finance specialist at Norton Rose Fulbright where he is Head of the Middle East. Formerly a member of the Bank of England Committee on Islamic Finance, Lead at Dubai Islamic Economy Development Centre and CEO and Head of Europe at Al Salam Europe Ltd, European arm of Al Salam Bank in Bahrain.

“One of the reasons I have co-founded Nester with Youness is to reset our ‘default’ thinking when it comes to our day-to-day investment needs. We are pre-programmed from a young age to use banks in a certain way, including for all our investments.’

‘A core driver for me is to address financial inclusion which is also at the heart of Islamic finance, advocating for a fairer way to distribute wealth compared to the traditional fractional reserve banking model that is still used by banks. Nester gives a real alternative for both borrowers and investors and we hope that our journey together will be enlightening.”

Iqbal Khan –Investor through his Family Office; Baraka Khan Family Office.

Founding Chief Executive of HSBC Amanah & Fajr Capital; Board Member at Jadwa Investments Saudi Arabia; and the MENA Infrastructure Fund.

“I have had the privilege to contribute to the success of the Islamic Finance industry in numerous countries and this, my investment in Nester, is exciting in that it is the first such Fintech platform that ensures an ethically compliant structure that offers innovative financing and investment solution to a sector that has long needed innovation,” says Iqbal Khan.

Tariq Usmani MBE – Key Investor

CEO and Co-Founder of Henley Homes, the residential developer. Chair of the West London Islamic Centre and Mosaic’s Ex-Offender Programme.

“This is the beginning of the democratisation of real estate investment, whether one is acquiring real estate and needs financing or interested in earning a fixed return with real estate as security. Nester is innovative and focused on inclusion for all. With this ethos at the heart of its offering I am delighted to be a Director and Key Investor in this business” says Tariq Usmani MBE, a Key Investor