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


Over £500 million

has been committed in loans by our experienced property team as at 31 January 2024.



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.

About this company

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: 

  • Finding the Right Developer: They focus on relationship-based sourcing, working with well-known, experienced counterparts with a proven track record, and avoiding high-end developments or inexperienced developers. 
  • Diversification: Their strategy involves assessing opportunities across the UK, focusing on opportunities with good liquidity. 
  • Deep Markets: DDF concentrates on markets with structural undersupply. 
  • Security: All loans are secured with first-ranking (or equal first-ranking) security on the land, property, and applicable assets of the borrowers. 

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

DDF map8.png


  • Am I eligible to invest?

    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

  • Does FSCS protection apply?

    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. 

  • 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.

    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.

  • Who is the team behind DDF?

    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.

  • What loans have been issued?

    As at 30 April 2024

    Deal #PostcodeType (Funding Purpose) Total Committed Amount (£)Loan Term (months)Estimated Gross LTGDV**
    1CR5Residential £                 3,810,208.002170.0%
    2SL8Residential £                 3,316,008.743073.0%
    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 £                    607,955.001549.0%
    8KT12Bridge £                 1,163,903.872467.0%
    9PO11Residential £                 4,225,216.002268.0%
    10TN8Bridge £                 2,475,846.001257.0%
    11SW7Bridge £                 1,275,510.001348.0%
    12SG19Residential £                    750,000.001869.0%
    13aGL4Residential £                 4,320,000.003670.0%
    13bGL4Residential £                 4,395,070.883670.0%
    14EH54Residential £                 4,193,644.002468.0%
    15EX8Residential £                 3,461,943.003560.0%
    16OX3Bridge £                    566,576.001870.0%
    17MK45Residential £                 1,030,571.002465.0%
    18CV36Residential £               12,414,239.002855.0%
    19HP4Residential £                 1,111,753.001458.0%
    20SG1Residential £                 3,014,300.001660.0%
    21SL6Residential £                    681,818.001856.0%
    22SN7Residential £                 1,919,192.002154.0%
    23OX25Residential £                 1,941,238.001865.6%
    24TS16Residential £                 5,001,232.002762.3%
    25BH21Residential £                 4,120,484.003268.0%
    26TR1Residential £                    656,566.001864.0%
    27RH19Residential £                 1,573,232.002165.0%
    28BH14Bridge £                 5,026,256.00669.0%
    29BR3Bridge £                 1,316,162.001267.0%
    30B12Residential £                 5,777,682.532569.0%
    31SW20Residential £                    944,375.751869.0%
    32E14Residential £                 7,629,351.903066.0%
    33CT15Residential £                    662,013.102462.0%
    34PE31Residential £                 3,291,346.103272.0%
    35RG42Residential £                    812,498.802465.0%
    36SG4Residential £                    828,096.502469.0%
    37TN4Residential £                 1,126,850.501864.0%
    38OX33Residential £                    426,857.751850.0%
    39WS11Residential £                    302,407.301870.0%
    40SL9Residential £                    419,304.001870.0%
    41G67Residential £                    516,200.301871.0%
    Total Loanbook Committed Amount£113,375,323
    Weighted average LTGDV62.6%
    Weighted average borrower interest rate10.39%

     *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 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.

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