Downing Development Finance An experienced property team

Downing Development Finance Bonds are considered to be a speculative illiquid security, and therefore, restricted to High Net Worth, Sophisticated and Professional investors only. Once you login to or create an account, you will be able to see the Bonds that are available to you.

To find out more about how investors are classified and why please see the FCA ruling here. 

The Financial Services Compensation Scheme (FSCS) for deposits does not apply to Downing Bonds. There may be circumstances in which investors can claim up to £85,000 of compensation where Downing LLP is unable or unlikely to honour legally enforceable obligations against it (e.g. claims for fraud or misrepresentation). However, investors will not be able to claim under the FSCS simply because a Bond fails to repay capital or pay interest. 

As with all investments, investing in DDF would have risks that you should be aware of and comfortable with before you invest. Your capital is at risk and returns are not guaranteed.

Investing in smaller companies will normally involve greater risk compared to investing in larger, more established companies.

The past performance of DDF is not a reliable indicator of its future results.

The issuer may not generate enough money to pay the loan interest on the Bond.

Other parties have equal-ranking security over the assets of DDF, therefore assets available to satisfy the claims of bondholders in the event of a default may be divided and all capital may not be recovered.

The borrowers may suffer from cost overruns or delay, which may impact their ability to service and repay their loan.

DDF lends to UK borrowers in the property sector.  A material downturn in property prices would affect borrowers' ability to repay loans.

Before you put money into an investment it is essential that you consider the risks involved. For the full list, please refer to the relevant Offer Document.

The team of 13 is led by Parik Chandra, Partner and Head of Residential Finance. Parik has 20 years' financial services experience, predominantly focused on debt and the real estate finance space where he has led over 150 transactions, but has broader experience including leveraged finance, restructuring and private equity placement.

As at 31 March 2024

 *loan extension formally granted

**Estimated LTGDV = at the time of underwriting

• DDF believes investments in property debt can produce relatively stable and predictable returns.
• Loans backed by property can be seen as lower risk and less volatile than non asset-backed investments. 
• Property loans that are backed by bricks and mortar or land can improve recovery prospects if the borrower can't repay the loan.

1. Screening: each deal is assessed against our lending criteria and presented to the Investment Committee for approval.
2. Due diligence: thorough diligence is undertaken to ensure the deal dynamics are as presented. Typically, diligence streams include valuation, monitoring surveyor report, Know Your Customer (“KYC”) checks and legal diligence.
3. Commitment: following completion of diligence, final loan documentation is issued to the borrower outlining committed loan terms.
4. Monitoring: on development projects, monthly interim reports are prepared by the monitoring surveyor, commenting on progress to date against the programme and budget. The progress of sales is closely monitored by the DDF team.
5. Repayment: of a loan is typically through the sale of units or a refinance. Once redemption funds are received, our loan security is discharged.