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Care home launches £3m crowdfund target

manor-grangeA care home for the elderly in Edinburgh, established by Care Concern Group, is raising £3million from investors through Downing Crowd, a crowdfunding platform that invests in a wide range of UK business sectors.

Downing Crowd bonds are a type of investment-based crowdfunding that allow investors to lend directly to businesses via bonds that are secured against a firm’s operational assets.

This security seeks to help reduce investor risk by enabling Downing Crowd to sell these assets if the borrower defaults on the bond. The Manor Grange asset-backed Crowd Bond allows investors to earn up to 5.5% over 12 months.

The Manor Grange care home, overlooking Carrick Knowe Golf Course in the Corstorphine area of Edinburgh, opened last month after the redevelopment and refurbishment was funded by Downing Crowd’s wider investment business, Downing LLP.

The funds now being raised by Crowd Bond investors will help support the ongoing operation and day-to-day running of the home.

Downing and Care Concern Group have been working together for more than four years, with Downing providing more than £30 million of investment to its projects.

Care Concern operates more than 20 residential care facilities across the UK.  

Julia Groves, head of crowdfunding, said: “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.

“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.”

Manpreet Johal, CEO, Care Concern Group, added: “Finding more traditional forms of funding is still a challenge for many businesses in both the care sector and beyond.”

Downing Crowd’s Manor Grange Care Home Bond first Tranche closes at noon on 2 December.

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