Investment manager Downing LLP is celebrating its Property Finance team passing the significant £300 million milestone for commitments.
Around £140 million of the total has been achieved in the past financial year and the team has completed 90-plus transactions since inception with c.£120 million repaid (as of 30 May 2022).
The impressive growth has been delivered without any loss of capital or interest to date despite tough market conditions.
Downing LLP’s property finance team focuses on deploying funds from investors as secured loans to property developers delivering residential-led schemes nationwide as well as non-speculative commercial developments, and specialist sub-sectors such as student accommodation.
Downing believes its investors can benefit from debt investment secured against property development projects by targeting attractive yield through a “safety-first” lens, focusing on relationship-based sourcing and working with experienced counterparties.
Parik Chandra, Partner and Head of Specialist Lending, Downing LLP said: “This is a great milestone and testament to the team’s continuing hard work managing a growing portfolio in a tricky macro environment, while also focusing on high quality origination in a very competitive market.”
“While we expect the market to face challenges over the next 12 to 18 months, we hope to continue this positive trajectory and remain committed to supporting SME developers.”
Downing LLP typically lends between £1 million and £25 million to experienced developers with the ability to go higher by exception. It lends up to 90% loan-to-cost and 70% loan-to-gross-development value.