Firm launches $100-m private placement offering focused on rigorously selected investments in first mortgages
Shortly after hosting a private placement offering for a high-yield mortgage trust, DealSquare is welcoming another firm that seeks to offer investors exposure to fixed income through selected mortgage investments.
Toronto-based real estate investment firm Downing Street Group has launched a $100-million private placement offering for its Downing Street Premium Yield Mortgage Fund (DSPYM). The fund is diversified across a mix of first mortgages on commercial, office, industrial, and development land properties in urban locations in Ontario.
DSPYM aims to provide consistent monthly distributions underpinned by rigorously underwritten first mortgages; each mortgage in the fund has a loan-to-value not exceeding 75%, and a term-to-maturity not exceeding two years. Since its launch in December 2019, DSPYM has reportedly provided its investors with distributions equivalent to approximately 8.55% per annum.
“We are actively growing both the debt and equity sides of our business and require a platform which can provide us with access to new capital sources,” said Downing Street Partner and COO Marc Canale. “DealSquare offers that access, while also providing our firm with additional market exposure.”
The Downing Street Group, founded in 1986, is focused on acquiring, repurposing, and developing residential, office, commercial, land, and industrial real estate throughout the Greater Toronto Area and Southwestern Ontario. Aside from advisory services, it provides both debt and equity financing to third parties across all asset classes. The firm says it provides stable and sustained risk-weighted returns for investors through the execution of its complementary investment theses, the expertise of its leadership team, and an intimate knowledge of the local market.
“This is the first time Downing Street has reached out to a wider investor audience and DealSquare, powered by NEO, is the perfect tool to make it happen,” said Jos Schmitt, president and CEO of NEO, which provides the technology behind the DealSquare platform. “The campaign offers broad exposure for Downing Street, while providing investors with a fully digitized platform to access an investment opportunity that would have otherwise been available to only a select fewi.”