Investment managers Downing and Pollen Street Capital (PSC) have secured two property development deals worth almost £20m as part of their real estate funding partnership.
The companies announced a partnership in December 2020 to fund residential development finance and bridging deals for developers.
The latest will fund the construction of 80 new residential apartments in the Digbeth area of Birmingham while the other, located in the Jewellery Quarter of the city, will see the construction of six new commercial units alongside 37 residential apartments.
“We are delighted to have supported these latest developments through our partnership with Downing,” Howard Garland, partner at PSC, said.
“The deals are another example of the positive impact of this partnership, improving access to finance for small – and medium-sized enterprise (SME) developers and helping them to add high quality residential and commercial stock across the UK.”
It comes after the investors revealed a £24.3m co-funded deal to construct two purpose-built student apartment blocks in Canterbury, which will provide accommodation and facilities for around 400 students.
Parik Chandra, partner and head of property finance at downing LLP, said support is needed for smaller developers now more than ever in the wake of the pandemic.
“Covid-19 has created understandable challenges for the whole property sector, and it has had an impact on growth projections for developers,” Chandra said.
“However, one thing that hasn’t changed is the fundamental need for more housing. Birmingham is a key regional city, and we are delighted to be helping developers to add high quality stock in sustainable locations.
“We are confident that the underlying dynamics of the property sector remain strong, and we continue to have a good appetite for supporting experienced, high quality, SME developers.