Broadway launches property fund for homeless
29-02-2012Broadway, the homelessness charity, is launching the first property fund to buy accommodation to support homeless people.
The new fund will support the charity’s Real Lettings operation which offers affordable accommodation in the private rented sector for former homeless people who do not qualify for social housing, but are ready and able to maintain a tenancy. Broadway’s Real Lettings initiative already leases 220 flats and the fund will allow it to expand by purchasing around 250 one and two bed flats, mainly in outer London boroughs.
The fund is being launched at Mansion House on 29 February where the keynote speech will be by the Secretary of State for Work and Pensions, Iain Duncan Smith. It is expected that he will use the opportunity to reinforce the importance of social investment.
The fund, which was developed with suppot from Resonance, will bulk buy units from developers and landlords, then lease them to Real Lettings who will guarantee rent and take on management and maintenance risk, helped by specialist residential developer United House.
The aim is now to raise £15m this summer from a growing pool of impact investors, mostly housing associations and charitable foundations, and a further £30m in 2013 , with potential to increase the fund to more than £100m by 2014 to enable larger institutions to invest.
Early discussions are underway with a number of investors who have supported homelessness initiatives in the past using income from their investments. These trusts are considering, under new Charity Commission guidelines, using their endowments to achieve a commercially risk adjusted return whilst also delivering a clear social impact.
Howard Sinclair, Chief Executive, Broadway, said: “The fund offers a sustainable path to providing homes for formerly homeless people. It will enable Real Lettings to expand and provide a yield for investors. All in all a smart solution.”
Notes to editors
About Broadway
Broadway is a London based homelessness charity. It provides a range of services to help people get accommodation, improve their physical and mental health, gain training and employment to live successful, independent lives.
Broadway’s services include:
- Street outreach – Broadway’s Street Outreach Teams make contact with people sleeping on the streets in London and link them with appropriate services such as health care, accommodation and learning opportunities.
- The Broadway Centre – The centre provides vial care such as showers and laundry facilities, access to GPs, a telephone and mailing address and training opportunities.
- Work and Learning – Broadway work with clients that are homeless, in hostel accommodation or in supported housing and offer a wide range of specialist work and learning activities to enable people to re-engage with society.
- Housing and Support – Broadway meet both the immediate and long-term needs of people experiencing homelessness (including Real Lettings).
- Welfare Rights and Money advice – Broadway’s advice services play a vital role in promoting the social inclusion of homeless people.
Launched by Broadway in 2005, Real Lettings is a pan-London, private sector move-on project. It provides an alternative source of move on accommodation to social housing. Real Lettings is a social enterprise. All profits go back to the charity Broadway.
