You could lose all of your money invested in these products.

These are high-risk investments and are much riskier than a savings account.

Downing Development Finance An experienced property team.


Over £87 million

has been committed in loans by our experienced property team as at 31 December 2021.



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.

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.


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.

DDF map8.png

Key facts:

  • Not available to everyday or restricted investors

    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 or call 020 7416 7780.

    You can find out more about the FCA ruling here.

  • What loans have been issued?

    As at 30 June 2022

    Deal #PostcodeType (Funding Purpose) Total Committed Amount (£)Loan TermInterest rateEstimated Gross LTGDV**
    1SK12Bridge£311,224.0012 months7.50%55.0%
    2HA6Residential £1,837,952.0021 months9.00%60.0%
    3KT12Bridge£1,163,903.87 18 months* 10.00%67.0%
    4GU51Residential £1,444,949.00 18 months 7.25%59.0%
    5Ox18Commercial£1,676,768.00 18 months 7.50%67.0%
    6CT20Residential £1,637,755.00 18 months 8.00%64.7%
    7TN8Residential £2,389,351.00 22 months 7.50%62.2%
    8PO9Residential £2,068,560.00 18 months 7.25%60.0%
    9CT5Residential £1,676,532.00 18 months 7.50%57.0%
    10(i)GL4Residential £4,320,000.0036 months*10.00%70.0%
    10(ii)GL4Residential £951,241.0036 months*20.00%70.0%
    11EX8Residential £1,711,108.0013 months7.75%60.0%
    12Ox3Bridge£323,232.0012 months7.50%70.0%
    13CT11Residential £1,667,064.0018 months7.25%65.0%
    14SN6Residential £1,012,658.0018 months7.75%65.0%
    15CV36Residential £12,414,239.0028 months8.00%55.0%
    16NN23Residential £2,521,326.0020 months7.00%60.0%
    17HP4Residential £5,961,648.0018 months7.25%65.0%
    18HP4Residential £5,057,271.0022 months7.25%59.0%
    19 SL8Residential £8,581,686.0024 months8.00%67.0%
    20SN7Residential £1,919,192.0021 months7.50%64.0%
    21TS16Residential £5,001,232.0027 months7.50%62.3%
    22BH21Residential £3,098,980.0022 months7.50%68.0%
    23TA9Residential £3,061,919.0018 months9.00%60.0%
    24TA9Residential £3,587,020.0018 months9.00%58.0%
    25B92Bridge£3,637,407.009 months7.50%71.0%
    26BH14Bridge£5,013,131.006 months7.00%69.0%
    27SO23Bridge£4,933,535.0018 months8.00%56.0%
    28HP9Bridge£2,905,025.0012 months6.00%61.0%
    29BR3Bridge£1,316,162.0012 months8.00%67.0%
    30OX2Bridge£683,131.009 months7.50%65.0%
    31SL8Residential £764,564.1018 months8.00%63.4%
    32B12Residential £5,777,682.5318 months10.00%69.0%
    33PO11Mixed£1,614,497.7518 months8.75%68.0%
    34PE31Residential£2,740,459.7021 months9.50%72.0%
    35SL5Residential£1,406,743.3021 months8.00%65.0%
    36B3Mixed£2,981,028.8024 months9.00%65.0%
    37WS11 £302,407.3028 months8.00%70.0%
    £1,425,052.4921 months8.00%66.6%
    39BH6Residential £600,504.7018 months8.50%65.0%
    40GU26Residential£1,843,350.9022 months8.00%59.0%
    41OX11Residential£1,026,537.4018 months7.75%69.0%
    Total loanbook committed amount£114,368,031
    Weighted average LTGDV63.3%
    Weighted average borrower interest rate8.21%

    *loan extension 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?

    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:

    • John Pollington, Investment Director: John has wealth of experience in the financial services industry, working at institutions including Coutts, Kleinwort Benson and Investec. John has spent around 15 years funding small to medium-sized housebuilders across the UK, with projects ranging in size from a few houses up to 100 unit schemes.
    • Richard Lamb, Investment Director: Richard has over 18 years’ experience in the sector and 30 years of banking experience overall, having previously held roles at Octopus Property, Triodos Bank, Unity Trust Bank, Clydesdale Bank and Barclays.
    • John Pilbeam, Construction Director: John has 30 years’ wide-ranging experience gained at partner level with two major surveying practices, and roles including Head of Construction (Europe) with AIG Global Real Estate, European Projects Director with Pyramid Hotel Group and Projects Director with Shore Energy. 
    • Ciara Robley, Associate Director: Ciara has over 10 years' experience in the property finance sector, previously specialising in commercial real estate finance and asset management at Deutsche Bank and CBRE.
    • Sandra Randall, Associate Director: Sandra focuses on loan closing and the ongoing management of the property development loan portfolio. She has over 15 years’ experience in the sector across both investment and development transactions and has held positions at Ratesetter, GE Capital, Deutsche Postbank and GMAC.
    • Morgan-Rose Sullivan, Portfolio and Operations Manager: Morgan-Rose previously worked with the Loan Administration team at Close Brothers where she supported the origination teams across both development and bridging finance after obtaining her Investment Operations Certificate.
    • Oliver Pettafor, Loan Analyst: Oliver supports the team with the execution of new deals. Prior to Downing, Oliver worked at ICG Longbow, in the Portfolio Management and Origination teams; focusing on mezzanine debt and whole loans across a range of real estate asset classes.
  • 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.
  • Additional risk relating to Covid-19

    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.

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