You could lose all of your money invested in these products.
These are high-risk investments and are much riskier than a savings account.
Over £87 million
has been committed in loans by our experienced property team as at 31 December 2021.
63.1%
is the estimated loan-to-gross-development value of the portfolio as at 31 December 2021. This should not exceed 70%.
Approximately 9%
weighted average borrower interest rate.
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.
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.
The Financial Conduct Authority (FCA) have restricted the promotion of some bonds to unadvised retail 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 or Sophisticated Investors, or those receiving advice from an FCA regulated financial adviser.
If you would like a copy of the offer document please email crowdfunding@downing.co.uk or call 020 7416 7780.
You can find out more about the FCA ruling here.
As at 30 April 2022
Deal # | Postcode | Type (Funding Purpose) | Total Committed Amount (£) | Loan Term | Interest rate | Estimated Gross LTGDV** |
1 | SK12 | Bridge | £311,224.00 | 12 months | 7.50% | 55.0% |
2 | HA6 | Residential | £1,837,952.00 | 21 months | 9.00% | 61.0% |
3 | LS13 | Residential | £2,658,143.00 | 18 months | 7.50% | 52.0% |
4 | KT12 | Bridge | £1,163,903.87 | 18 months* | 10.00% | 67.0% |
5 | SK12 | Residential | £515,243.00 | 18 months | 8.00% | 62.0% |
6 | SK12 | Residential | £515,243.00 | 18 months | 8.00% | 62.0% |
7 | HP1 | Residential | £2,878,806.00 | 20 months | 7.50% | 45.0% |
8 | GU51 | Residential | £1,444,949.00 | 18 months | 7.25% | 59.0% |
9 | CT20 | Residential | £1,637,755.00 | 18 months | 8.00% | 64.7% |
10 | TN8 | Residential | £2,389,351.00 | 22 months | 7.50% | 60.0% |
11 | TN12 | Residential | £1,814,646.00 | 18 months | 7.25% | 61.2% |
12 | PO9 | Residential | £2,068,560.00 | 18 months | 7.25% | 60.0% |
13 | CT5 | Residential | £1,676,532.00 | 18 months | 7.50% | 57.0% |
14(i) | GL4 | Residential | £4,320,000.00 | 36 months* | 10.00% | 70.0% |
14(ii) | GL4 | Residential | £1,545,041.00 | 36 months* | 20.00% | 70.0% |
15 | EX8 | Residential | £1,711,108.00 | 13 months | 7.75% | 60.0% |
16 | CT11 | Residential | £1,667,064.00 | 18 months | 7.25% | 65.0% |
17 | SN6 | Residential | £1,012,658.00 | 18 months | 7.75% | 65.0% |
18 | YO26 | Residential | £2,352,311.00 | 22 months | 8.50% | 65.0% |
19 | HP4 | Residential | £5,961,648.00 | 18 months | 7.25% | 65.0% |
20 | HP4 | Residential | £5,057,271.00 | 22 months | 7.25% | 59.0% |
21 | SL8 | Residential | £8,581,686.00 | 24 months | 8.00% | 67.0% |
22 | HP7 | Residential | £2,209,192.00 | 18 months | 7.50% | 61.0% |
23 | SN7 | Residential | £1,919,192.00 | 21 months | 7.50% | 64.0% |
24 | TS16 | Residential | £5,001,232.00 | 27 months | 7.50% | 62.3% |
25 | CR5 | Residential | £2,195,571.00 | 18 months | 6.75% | 61.0% |
26 | BH21 | Residential | £3,098,980.00 | 22 months | 7.50% | 68.0% |
27 | TA9 | Residential | £3,061,919.00 | 18 months | 9.00% | 60.0% |
28 | TA9 | Residential | £3,586,930.00 | 18 months | 9.00% | 58.0% |
29 | B92 | Bridge | £3,637,407.00 | 9 months | 7.50% | 71.0% |
30 | BH14 | Bridge | £5,013,131.00 | 6 months | 7.00% | 69.0% |
31 | SO23 | Bridge | £3,915,455.00 | 18 months | 8.00% | 56.0% |
32 | HP9 | Bridge | £2,905,025.00 | 12 months | 6.00% | 61.0% |
33 | BR3 | Bridge | £1,316,162.00 | 12 months | 8.00% | 67.0% |
34 | OX2 | Bridge | £683,131.00 | 9 months | 7.50% | 65.0% |
35 | SL8 | Residential | £764,564.10 | 18 months | 8.00% | 63.4% |
36 | B12 | Residential | £5,777,682.53 | 18 months | 10.00% | 69.0% |
37 | PO11 | Mixed | £1,614,497.75 | 18 months | 8.75% | 68.0% |
38 | PE31 | Residential | £2,740,459.70 | 21 months | 9.50% | 72.0% |
39 | SL5 | Residential | £1,406,743.30 | 21 months | 8.00% | 65.0% |
40 | B3 | Mixed | £2,981,028.80 | 24 months | 9.00% | 65.0% |
41 | BR1 | Residential | £1,424,737.23 | 21 months | 8.00% | 59.0% |
42 | BH6 | Residential | £600,504.70 | 18 months | 8.50% | 65.0% |
43 | GU26 | Residential | £1,843,350.90 | 22 months | 8.00% | 59.0% |
Total loanbook committed amount | £110,817,991 |
Weighted average LTGDV | 63.3% |
Weighted average borrower interest rate | 8.10% |
*loan extension granted
**estimated LTGDV = at the time of underwriting
As with all investments, investing in DDF would have risks that you should be aware of and comfortable with before you invest.
For a full list of risks please see here.
Downing has over ten years’ experience of making loans in the UK property development sector. The current team has committed more than £212m of loans, with £109m of capital repaid to date without default.
The DDF team is led by Parik Chandra, Partner and Head of Residential Finance. Parik has 18+ years financial services experience, with a specialism in real estate finance but with broader experience including leveraged finance, restructuring and private equity placement. He was previously a Director on the Real Estate Finance Team at Funding Circle, where he transacted over 100 development finance and bridging deals.
Parik is supported by an investment team consisting of:
The effect of COVID-19 on the UK and global economies has been significant. We are still in the middle of the pandemic and there remains uncertainty about the future impacts of past and future measures taken. There remains a risk that these events could impact the ability of the Issuer to make interest payments on the Bonds when they fall due, although this is not currently expected or forecast.
Reservations are not binding. Minimum amount is and maximum amount is
We have closed reservations for this investment. However, we can notify you when the bond is open for investment (there will be limited additional capacity).