Downing closes £25 million Peckham development loan
Responsible investment manager Downing LLP is continuing to deliver strong growth despite tough economic conditions with the completion of a £25 million development.
Its Property Finance team is expanding its support for UK property developers with funding for a development in Peckham, London – which will see 91 residential units built including 59 for private sale and 32 for affordable housing and shared ownership.
The properties have been designed to be energy efficient and will include onsite air source heat pumps and solar PV capabilities.
The loan supports development at a site in a residential area of Peckham, immediately overlooking Peckham Rye Park and Common.
It is the third deal Downing has completed with this client and includes funding for purchasing the site and demolition of existing residential apartment blocks which have been the subject of several applications for refurbishment and part demolition.
Downing’s Property Finance team deploys funds from investors as secured loans to property developers, delivering residential-led schemes nationwide as well as non-speculative commercial developments, and specialist sub-sectors such as student accommodation.
Downing believes its investors can benefit from debt investment secured against property development projects and wholesale lending opportunities by targeting attractive yield through a “safety-first” lens, focusing on relationship-based sourcing and working with experienced counterparties.
Parik Chandra, Partner and Head of Specialist Lending, Downing LLP, said:
“We are particularly pleased that the Peckham development will provide a mix of properties for private sale and affordable housing while substantially upgrading the existing development.
The market remains very competitive despite the current challenging economic conditions, but we are always looking for opportunities and focused on working in partnership with developers who have strong track records.”