Downing’s property finance division hits £300m milestone

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Downing’s property finance team has passed the £300m lending milestone.

The investment manager said that around £140m of the total has been achieved in the past financial year, with around £120m repaid as of 30 May 2022.

There has been no loss of capital or interest to date.

Downing’s property finance team deploys funds from investors as secured loans to property developers. Projects include both residential and commercial developments and specialist sub-sectors such as student accommodation.

Read more: How can P2P property investors buck the downturn?

“This is a great milestone and testament to the team’s continuing hard work managing a growing portfolio in a tricky macro environment, while also focusing on high quality origination in a very competitive market,” said Parik Chandra, partner and head of specialist lending at Downing.

“While we expect the market to face challenges over the next 12 to 18 months, we hope to continue this positive trajectory and remain committed to supporting SME developers.”

Chandra joined Downing in 2017 from former peer-to-peer lending platform Funding Circle, which had decided to shut down its property division to focus on its core business loan product.

Downing hired Chandra and Hannah Kenny from Funding Circle to help launch its crowd bonds platform subsidiary Downing Crowd’s new development finance offering, called the Downing Development Finance (DDF) portfolio.

Read more: Funding Circle to shut down forum amid property loan debate

As well as hiring Funding Circle staff, Downing selected a number of loans from Funding Circle’s property loanbook for its DDF portfolio. DFF has lent out around £100m to date.

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