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.
Over £500 million
has been committed in loans by our experienced property team as at 31 January 2024.
57.86%
is the estimated loan-to-gross-development value of the portfolio as at 31 December 2023. This should not exceed 70%.
Approximately 9.88%
weighted average borrower interest rate as at 31 December 2023.
Downing Development Finance (DDF) was established in 2017 in response to the conservative lending environment of banks, particularly towards small and medium-sized enterprises (SMEs).
Loans are offered to residential property developers and property development companies, as well as trading businesses looking to construct new, or modify existing, premises.
Amongst the products DDF offers developers are sustainability linked loans, which incentivise borrowers by means of an interest rate rebate if they meet Downing’s sustainability criteria. The aim is to encourage positive behaviours, whilst supporting Downing’s ethos of making investments that matter.
DDF adopts a "safety-first" approach in targeting attractive yields, including:
DDF Bonds are classified as a speculative illiquid security and are restricted to High Net Worth Individuals, Sophisticated and Professional investors only.
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 30 April 2024
Deal # | Postcode | Type (Funding Purpose) | Total Committed Amount (£) | Loan Term (months) | Estimated Gross LTGDV** |
1 | CR5 | Residential | £ 3,810,208.00 | 21 | 70.0% |
2 | SL8 | Residential | £ 3,316,008.74 | 30 | 73.0% |
3 | HA6 | Residential | £ 2,073,952.00 | 34 | 66.0% |
4 | PO20 | Residential | £ 1,378,881.00 | 18 | 67.0% |
5 | GU35 | Residential | £ 9,090,909.00 | 24 | 35.0% |
6 | LS13 | Residential | £ 3,725,671.62 | 6 | 74.0% |
7 | N5 | Bridge | £ 607,955.00 | 15 | 49.0% |
8 | KT12 | Bridge | £ 1,163,903.87 | 24 | 67.0% |
9 | PO11 | Residential | £ 4,225,216.00 | 22 | 68.0% |
10 | TN8 | Bridge | £ 2,475,846.00 | 12 | 57.0% |
11 | SW7 | Bridge | £ 1,275,510.00 | 13 | 48.0% |
12 | SG19 | Residential | £ 750,000.00 | 18 | 69.0% |
13a | GL4 | Residential | £ 4,320,000.00 | 36 | 70.0% |
13b | GL4 | Residential | £ 4,395,070.88 | 36 | 70.0% |
14 | EH54 | Residential | £ 4,193,644.00 | 24 | 68.0% |
15 | EX8 | Residential | £ 3,461,943.00 | 35 | 60.0% |
16 | OX3 | Bridge | £ 566,576.00 | 18 | 70.0% |
17 | MK45 | Residential | £ 1,030,571.00 | 24 | 65.0% |
18 | CV36 | Residential | £ 12,414,239.00 | 28 | 55.0% |
19 | HP4 | Residential | £ 1,111,753.00 | 14 | 58.0% |
20 | SG1 | Residential | £ 3,014,300.00 | 16 | 60.0% |
21 | SL6 | Residential | £ 681,818.00 | 18 | 56.0% |
22 | SN7 | Residential | £ 1,919,192.00 | 21 | 54.0% |
23 | OX25 | Residential | £ 1,941,238.00 | 18 | 65.6% |
24 | TS16 | Residential | £ 5,001,232.00 | 27 | 62.3% |
25 | BH21 | Residential | £ 4,120,484.00 | 32 | 68.0% |
26 | TR1 | Residential | £ 656,566.00 | 18 | 64.0% |
27 | RH19 | Residential | £ 1,573,232.00 | 21 | 65.0% |
28 | BH14 | Bridge | £ 5,026,256.00 | 6 | 69.0% |
29 | BR3 | Bridge | £ 1,316,162.00 | 12 | 67.0% |
30 | B12 | Residential | £ 5,777,682.53 | 25 | 69.0% |
31 | SW20 | Residential | £ 944,375.75 | 18 | 69.0% |
32 | E14 | Residential | £ 7,629,351.90 | 30 | 66.0% |
33 | CT15 | Residential | £ 662,013.10 | 24 | 62.0% |
34 | PE31 | Residential | £ 3,291,346.10 | 32 | 72.0% |
35 | RG42 | Residential | £ 812,498.80 | 24 | 65.0% |
36 | SG4 | Residential | £ 828,096.50 | 24 | 69.0% |
37 | TN4 | Residential | £ 1,126,850.50 | 18 | 64.0% |
38 | OX33 | Residential | £ 426,857.75 | 18 | 50.0% |
39 | WS11 | Residential | £ 302,407.30 | 18 | 70.0% |
40 | SL9 | Residential | £ 419,304.00 | 18 | 70.0% |
41 | G67 | Residential | £ 516,200.30 | 18 | 71.0% |
Total Loanbook Committed Amount | £113,375,323 |
Weighted average LTGDV | 62.6% |
Weighted average borrower interest rate | 10.39% |
*loan extension formally granted
**Estimated LTGDV = at the time of underwriting
To see what Bonds are currently on offer please log in to your account, or if you are not yet a member of the Downing Bond platform you can sign up here.
If you need any help or more information you can email us at crowdfunding@downing.co.uk, submit a ticket using the blue support button or give us a call on 020 7416 7780.
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).