Crowd publications press note | 20 August 2018

Downing Crowd launches fixed term property Bond offering up to 5.5% p.a. interest

Investment platform Downing Crowd has launched its second property development bond offer, as part of a 12-month programme to raise £50 million through a range of similar property bonds.

This latest bond offer will offer a choice of two fixed rates, either paying 4.5% P.A. for investing until August 2019, or 5.5% until 2020. All bonds in the programme can be held in the Downing Innovative Finance ISA which allows investors to earn this interest tax-free.

The proceeds of the new bond will be used to fund a range of property developments, offering a degree of diversification for investors. £38 million worth of property loans have already been committed from this loan book and there is an expected pipeline of further property loans totalling over £24 million (both figures as at June 2018).

All loans will have a first ranking (or equal first-ranking) security on the land, property and applicable assets of the borrowers. To ensure alignment with investors, property developers are required to have a stake in the project, usually in the form of either a cash contribution or alternatively third-party equity.

A summary of the loan book will be published online and, importantly, show the rate of interest that the borrower is paying, to give investors a clear picture of where their money is going and help them assess the level of risk.

If you’d like to find out more about this latest bond offer from Downing or are interested in speaking to a member of the Downing team, please contact Pamela Morris at the lang cat on 07712 515 503 / pamela@langcatfinancial.com