Downing Crowd launches fixed-term property bond

CROWD bond platform Downing Crowd has launched a fixed-term property development bond as part of a £50m fundraising programme.

This is the second offer launched by Downing as part of a 12-month programme to raise money through property development bonds, all of which are eligible to be held in the platform’s Innovative Finance ISA wrapper.

Read more: Downing launches £1.6bn electric vehicle project

The latest facility offers investors annual returns of either 4.5 per cent until August 2019 or 5.5 per cent for investing until 2020.

All loans are secured with first charge on the land or property, and the property developer is required to have a stake in the project.

Downing said that £38m worth of property loans have already been committed from this loan book and it expects a pipeline of further loans totalling over £24m.

Read more: Downing enters property development space with Funding Circle hires

“A summary of the loan book will be published online and, importantly, show the rate of interest that the borrower is paying, to give investors a clear picture of where their money is going and help them assess the level of risk,” Downing added.

Read more: Downing Crowd launches £3.95m biogas bond

wpsso_insert_js( "fb-script-header", "http://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.6&appId=" );


Source link

Read the full article