Social impact property fund reaches more than £46m
A social impact property fund connected to the enterprise arm of the homelessness charity Broadway, has risen to more than £46m after Big Society Capital and Croydon Council both increased their commitments by £10m.
The Real Lettings Property Fund is the largest impact investment fund in the UK and was set up in 2013 to provide accommodation for homeless people who do not qualify for social housing. It received an initial donation from Big Society Capital of £5m last April and an additional £10m commitment last month.
Since the fund’s launch 18 months ago, 219 homes have been acquired or are in the process of being bought. Some 82 properties have already been handed over to Real Lettings and over 40 are being refurbished.
Investors to the fund include the City of London, L&Q, one private individual investor and several charitable foundations investing from their endowments, including Esmee Fairbairn and Lankelly Chase.
In February 2014, the first local authority, Croydon Council, invested £10m with the promise of a further £10m if the scheme proved a success. In July 2014, it invested the second £10m, contributing significantly to the total £46m figure.