Downing Secured Finance: experts in the unique

By Downing Secured Finance

Downing Secured Finance is the dedicated lending facility at Downing LLP, a London-based investment manager with over £870m in funds under management across a variety of sectors.

Working with experienced developers and operators, Downing’s team brings both finance and property expertise to the table. We know that no two projects are the same, so we identify the unique features of each project and offer a bespoke solution.

Since launching in 2010, Downing has provided more than £250m worth of loans to residential, commercial and specialist technical projects throughout the UK.

In addition to providing development and bridging finance, Downing can offer corporate bonds. In early 2016, Downing launched its online platform, Downing Crowd, to help meet the growing needs of borrowers seeking alternative sources of funding.

Residential projects

Funding is available to UK companies or LLPs with full planning consent for the proposed scheme and an established track record.

  • Typical opportunities: New-builds, conversions, homes and student accommodation
  • Investment size: Typically £1m-10m investment size
  • Maximum loan-to-cost: 85%
  • Maximum loan-to-value: 65%
  • Typical terms: 9-24 months
  • Interest rates: From 8% p/a

Downing will take the time to understand any issues that may prevent mainstream lenders from offering terms. Our focused team and short reporting lines enable us to make decisions and act quickly, to enable you to secure the best schemes.

Commercial projects

Downing has made some £44m of loans to commercial projects in the UK.

  • Typical opportunities: Licensed leisure, hotels, care homes and children’s nurseries
  • Investment size: Typically £1m-10m investment size
  • Maximum loan-to-cost: 85%
  • Maximum loan-to-value: 75% for pre-let developments, 60% for speculative builds
  • Typical terms: 9-24 months
  • Interest rates: From 8% p/a

The team looks for developers with an established track record of delivering these types of projects. Funding is available to UK companies or LLPs with full planning consent for the proposed scheme. Often the tenant will have signed up for an agreement for lease prior to the commencement of construction.

Technical projects

Technical projects are often outside the scope of mainstream lenders. Downing has made more than £160m of loans to these types of businesses.

  • Typical opportunities: Data centres, energy generation projects, material recycling facilities and automated warehouses
  • Investment size: Typically £1m-10m investment size
  • Maximum loan-to-cost: 70%
  • Maximum loan-to-value: 50-65%
  • Typical terms: 12-60 months
  • Interest rates: From 9% p/a

Downing’s team is experienced in the unique challenges of when the cost of machinery and equipment exceeds the cost of the building, and when income streams include added-value services or the sale of electricity as well as rent.

Coroporate bonds

Since launching in March 2016, Downing Crowd has raised more than £25m for smaller UK businesses in a variety of asset-backed and renewable energy sectors.

  • Typical opportunities: Care homes, pubs, data centres and sustainable energy projects
  • Investment size: Typically £1m-5m investment size
  • Maximum loan-to-value: 70%
  • Typical terms: 12-36 months
  • Interest rates: From 8% p/a

Find out more

If you have an opportunity you’d like to discuss, please contact Alex Cochand at alex.cochand@downing.co.uk