Property fund to help homeless31-01-2012
Broadway, a pioneering charity providing rental housing for homeless people in London, is shortly to launch a new property fund which will enable it to provide more vulnerable and hard-to-house individuals with a home.
Resonance has been working with Broadway to develop a property fund, which will aim to secure up to £30 million of investment from charitable trusts, housing associations and institutional investors, such as pension funds. Resonance will act as fund manager and landlord, leasing the properties to Broadway, which will then sublet to homelesss people.
Daniel Brewer, director of Resonance, said the model offers low-risk investment, with property voids underwritten by Broadway. In return, investors can expect a 4 per cent yield over a 5-6 year term.
Howard Sinclair, chief executive of Broadway, said that Broadway is already looking at potential properties, which will be one- or two-bedroom properties in affordable locations. The Fund aims to close the first £15 million of equity by the summer, with purchased properties then occupied by September. It is hoped the fund will eventually acquire up to 250 properties for Broadway.