Don't invest unless you are prepared to lose all the money you invest. These are high-risk investments and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Don't invest unless you are prepared to lose all the money you invest. These are high-risk investments and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Downing Development Finance An experienced property team.

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Over £400 million

has been committed in loans by our experienced property team as at 31 March 2023.

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 61.8%

is the estimated loan-to-gross-development value of the portfolio as at 31 March 2023. This should not exceed 70%.

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Approximately 9.4%

weighted average borrower interest rate as at 31 August 2023.

About this company

Downing Development Finance (DDF) was set up in 2017 at a time when banks were continuing to limit development finance for small and medium-sized enterprises (SMEs). DDF and its subsidiary Downing Development Lending Ltd make secured loans to residential property developers, property development companies and trading businesses looking to build new, or alter existing, premises. 

Note that DDF bonds are restricted to High Net Worth Individuals, Sophisticated and Professional investors only.

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Examples of property developments and bridging loans funded by DDF:

1. Cornwell Construction Limited, Stroud

A £5.1 million loan was provided to support the development of 33, 3 & 4-bed houses across 3 phases. This has been repaid in full.

2. Nostell Developments Limited, Leeds

A £2.7 million loan for the refinance of phase 1 and redevelopment of phase 2 of 31 houses. This has been repaid in full.

3. RJay Developments Limited, Oxford

A £1.3 million loan for an exit bridge secured against a completed development of 6 flats to an experienced developer.

Past performance is not a reliable indicator of future results / performance. 

DDF bonds are classified as a speculative illiquid security and are restricted to High Net Worth Individuals, Sophisticated and Professional investors only.

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Key facts:

  • Not available to restricted investors

    The Financial Conduct Authority (FCA) have restricted the promotion of some bonds to Restricted investors from 1 January 2020.

    The new rules apply only to what the FCA term 'speculative illiquid securities' (SIS). This basically means unlisted debentures or preference shares issued by a company that then uses the funds raised to lend to or invest in other companies, or to purchase or develop property that is not for its own use.

    Downing Development Finance Property bond is a speculative illiquid security and therefore investment is restricted to High Net Worth, Sophisticated and Professional investors only. Once you log in to your account, you will be able to see those bonds that are available to you.

    You can find out more about the FCA ruling here.

  • What loans have been issued?

    As at 31 December 2023

    Deal #PostcodeType (Funding Purpose) Total Committed Amount (£)Loan Term (months)Estimated Gross LTGDV**
    1CR5Residential  £                 3,810,208.002170.0%
    2SL8Residential  £                 3,316,008.742973.0%
    3HA6Residential  £                 2,073,952.003466.0%
    4PO20Residential  £                 1,378,881.001867.0%
    5GU35Residential  £                 9,090,909.002435.0%
    6LS13Residential  £                 3,725,671.62674.0%
    7N5Bridge £                    607,955.001249.0%
    8KT12Bridge £                 1,163,903.872467.0%
    9PO11Residential  £                 4,225,216.002268.0%
    10WF2Residential  £                 1,569,388.001865.0%
    11TN8Residential  £                 2,475,846.001257.0%
    12SW7Bridge £                 1,275,510.001348.0%
    13CT5Bridge £                 1,121,788.001264.0%
    14SG19Residential  £                    750,000.001869.0%
    15aGL4Residential  £                 4,320,000.003670.0%
    15bGL4Residential  £                 3,153,204.883670.0%
    16EX8Residential  £                 3,461,943.002560.0%
    17OX3Residential  £                    566,576.001870.0%
    18CT11Residential  £                 1,667,064.002965.0%
    19SN6Residential  £                 1,012,658.001865.0%
    20CV36Residential £               12,414,239.002855.0%
    21TN23Residential  £                 2,521,326.002060.0%
    22HP4Residential  £                 5,711,648.001865.0%
    23HP4Residential  £                 1,111,753.001458.0%
    24SG1Residential  £                 3,014,300.001660.0%
    25SL6Residential £                    681,818.001856.0%
    26SN7Residential  £                 1,919,192.002154.0%
    27OX25Residential  £                 1,941,238.001865.6%
    28TS16Residential  £                 5,001,232.002762.3%
    29BH21Residential  £                 3,098,980.002268.0%
    30TR1Residential  £                    656,566.001864.0%
    31TA9Residential  £                 3,587,020.002158.0%
    32RH19Residential  £                 1,573,232.002165.0%
    33B92Bridge £                 3,637,407.002171.0%
    34BH14Bridge £                 5,026,256.00669.0%
    35BR3Bridge £                 1,316,162.001267.0%
    36B12Residential  £                 5,777,682.532569.0%
    37SW20Residential  £                    944,375.751869.0%
    38BH14Residential  £                    378,825.701870.0%
    39E14Residential £                 7,629,351.903066.0%
    40CT15Residential £                    662,013.102462.0%
    41PE31Residential £                 3,273,846.103272.0%
    42RG42Residential £                    812,498.802465.0%
    43SG4Residential £                    828,096.502469.0%
    44EH54Residential £                    795,918.002468.0%
    45TN4Residential £                 1,126,850.501864.0%
    46OX33Residential £                    426,857.751850.0%
    47WS11Residential £                    302,407.301870.0%
    48SL9Residential  £                    419,304.001870.0%
    49OX11Residential £                 1,026,537.401869.0%
    50G67Residential £                    516,200.301871.0%


    Total Loanbook Committed Amount£128,899,818
    Weighted average LTGDV62.6%
    Weighted average borrower interest rate9.88%

     *loan extension formally granted

    **Estimated LTGDV = at the time of underwriting


  • Why does DDF lend to property developers?
    • 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.
  • What are the risks?

    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.
    • 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.  

    For a full list of risks please see here.

  • Who is the team behind Downing Development Finance?

    The team of 11 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.

  • What is the lending process for property developers?
    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.

We're here to help

To see what bonds are currently on offer please log in to your account, or if you are not yet a member of Downing Crowd you can sign up here

If you need any help or more information you can email us at crowdfunding@downing.co.uk, use the chat function or give us a call on 020 7416 7780.