Commercial Finance
Downing Property Finance launches sustainability-linked development loans
Downing Property Finance has come out with loans to reward developers that utilise sustainable building practices.
The range has been backed by £75m funding from HSBC for sustainable lending.
The product will offer eligible borrowers interest payment refunds from 0.25 to 0.1 per cent on drawn funds.
Downing will work closely with developers to create an assessment, which will include waste and water management, carbon reduction and energy efficiency.
The lender will also engage with developers to identify areas that could make a development more sustainable and increase the rebate available to them.
Once the development is completed, an independent specialist will assess how it complies with sustainability objectives.
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Parik Chandra, partner and head of specialist lending at Downing LLP, said: “We firmly believe that our sustainable loan product represents one of the most compelling incentives driving sustainable innovation within the construction industry. Furthermore, it aligns with the evolving preferences of end buyers who increasingly prioritise energy efficiency in residential schemes.
“Downing Property Finance takes pride in delivering this initiative, empowering property developers to embrace sustainability, reduce environmental impact, and create appealing, energy-efficient residential projects that cater to the discerning preferences of today’s homebuyers.”