Responsible investment manager Downing LLP has announced a £12.9m deal to fund the redevelopment of a horse training yard and residential property in Epsom, Surrey.
The project will include the construction of 12 one-bedroom and 30 two-bedroom flats, along with a state-of-the-art racehorse training establishment and accommodation for trainers and staff.
Downing’s Property Finance team, which focuses on deploying investors’ funds as secured loans to property developers, has seen recent strong growth despite challenging market conditions.
The team’s strategy involves targeting attractive yields from debt investments secured against property development projects while emphasising a “safety-first” approach, relationship-based sourcing, and collaboration with experienced counterparties.
Parik Chandra, partner and head of specialist lending at Downing LLP, said: “We continue to see a growing number of attractive opportunities to provide funding to property developers despite the very tough macro conditions and a competitive market.
“The Epsom deal exemplifies our commitment to supporting SME developers and providing flexible and innovative financing.”
Chandra also highlighted the development’s potential benefits for the local community, noting that updating the racehorse training facility would boost Epsom’s economy, an important consideration given the area’s significant horseracing heritage.
“The development also provides additional benefits for the community. By updating the racehorse training facility, Epsom’s local economy will receive a boost, an important aspect for an area that holds significant horseracing heritage.”
Downing LLP typically lends between £1m and £25m to experienced developers, with the capacity to go higher in exceptional cases. It lends up to 90% loan-to-cost and 70% loan-to-gross-development value.
