Care Concern Group, described as a high-quality care home for the elderly in Edinburgh, is raising £3million through Downing Crowd, a crowdfunding platform that invests in a wide range of UK business sectors. The funding will be raised using “Downing Crowd Bonds”, a type of investment based crowdfunding that allows investors to participate in a security that is secured against the firm’s assets thus mitigating risk. The Manor Grange asset-backed Crowd Bond will allow investors to earn up to 5.5% over a 12 month period. The first Tranche closes at noon on 2 December 2016.
“Finding more traditional forms of funding is still a challenge for many businesses in both the care sector and beyond. We pride ourselves on providing the best possible care facilities and comfortable surroundings for our residents and thanks to the support of crowdfunding investors we are confident that Manor Grange will be able to deliver this high standard of service. With our doors now open, we are looking forward to becoming an important part in the local Corstorphine community,” stated Manpreet Johal, CEO, Care Concern Group.
The project, Manor Grange care home, is overlooking Carrick Knowe Golf Course in the Corstorphine area of Edinburgh. The facility opened its doors in late October 2016, with the original redevelopment and refurbishment of the care home having been funded by Downing Crowd’s wider investment business, Downing LLP. The new funds currently being raised by “Crowd Bond” investors will help support the ongoing operation and day-to-day running of the care home.
Downing states they have been working with the Care Concern Group for over 4 years, with Downing providing more than £30 million of investment to its projects. Care Concern currently operates over 20 residential care facilities across the UK, with a material presence in Scotland.
“Over a million people have now invested through a Crowdfunding platform but, despite its popularity, the different kinds of crowdfunding tend to all get labelled as ‘extremely risky’,” stated Julia Groves, Head of Crowdfunding at Downing Crowd. “In fact, Crowd Bonds are a simple type of investment and, provided investors fully understand the relevant risks, they can offer attractive returns in the current climate of low interest rates and rising inflation.”
Groves explained that Downing Crowd will only invest in established UK businesses. She said Crowd Bonds are a great way for investors to make an impact in their own community.
“Manor Grange is the first of what we hope will be many opportunities in the residential care sector for Downing Crowd, as we see a lot of potential here to help encourage greater quality care for the elderly. The Scottish market in general also holds exciting prospects for us too, with our Crowd Bond investors having just recently provided £1.25 million funding for a newly opened hydro power station in Argyll,” said Groves.
Downing Crowd’s Manor Grange Care Home Bond first Tranche closes at noon on 2 December 2016. For more details of the offer and other Downing Crowd Bonds visit https://www.downingcrowd.co.uk/
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