HOUSING AND LOCAL FACILITIES
ST MUNGO’S BROADWAY
The Real Lettings worker
was the first person to
actually ask me what I
wanted, listen and then
come up with the goods.
I’m really excited about
the future.
Real Lettings tenant
Problem
There are over 6,500 people sleeping rough
in London and 42,430 households living in
temporary accommodation which is expensive
and not sustainable. There is also a lack of
suitable transitional accommodation for people
at risk of or experiencing homelessness.
Revenue Model
Real Lettings leases property from the Real
Lettings Property Fund for a five year term.
Rental income from the properties which is
largely from housing benefit is used to repay
investors.
Invested
£36 million
Turnover
£15.2 million (Broadway to
31 March 2014)
Type of organisation
Charity
Solution
St Mungo’s Broadway set up Real Lettings
to provide affordable accommodation and
support for up to two years to homeless
families and individuals who are ready for
independent living but struggle to access
private rented accommodation.
Impact
The Fund aims to help up to 600 people by
providing around 220 properties over seven
years. So far, all clients have maintained their
tenancy for over six months and are taking care
of their home. 67% of tenants have received
help to find new networks or connections and
94% are either in work, education or training.
Cost of capital
Duration of investment
Investors
Real Lettings Property Fund
Other supporters
www.reallettings.com
Monument Trust, City of London, United House, L&Q
5% +
7 years
SOCIAL INVESTMENT FUND MANAGER
RESONANCE
Resonance mobilises investment capital to achieve lasting social value. It currently manages
two social impact funds, for its own CDFI, Community Land and Finance CIC. These are the
Community Share Underwriting Fund and the Affordable Homes Rental Fund. Resonance
developed the Real Lettings Property Fund in conjunction with St Mungo’s Broadway.
Approach to investing
The Real Lettings Property Fund is a social impact residential real estate investment fund which is
managed by Resonance and buys properties to house tenants supported by St Mungo’s Broadway’s
social lettings agency Real Lettings.
The Fund has a seven year initial duration, with the option for investors to extend it by up to two
further one year periods. Investors receive both rental yield on the properties and the potential for
capital appreciation over the life of the fund, and the charity guarantees rents and maintenance of
the property. In this way, investors receive a commercial risk-adjusted return of above 5% on their
investment and a clear social impact, whilst the charity manages the risks that it is best placed to take.
The fund aims to reach a target size of £45 million and over 220 properties by early 2015.
Why the investment was made into Real Lettings
The fund addresses problems related to housing and homelessness by increasing the supply
and quality of homes available to Real Lettings, scaling up its successful social impact model at
the same time as achieving a commercial risk-adjusted financial return for investors.
Simon Chisholm, Resonance
Key fund terms
Liquidity
NA
Duration
7 years
Investment from
Big Society Capital
£5 million
£36 million
Big Society Capital
strategy element
Scale
Size
Product type
Accessible to
Institutional investors
Professional individual investors
Retail investors/depositors
Property Fund
Social issue
Housing and local facilities
Lankelly Chase, L&Q
Other investors
Foundation, Esmée Fairbairn, City
Bridge Trust Foundation, London
Borough of Croydon, an individual
investor
www.resonance.ltd.uk
The information set out above is included for information purposes only and is not an offer or an invitation to buy or sell or a solicitation of an offer
or invitation to buy or sell or enter into any agreement with respect to any security, product, service or investment. Any opinions expressed do not
constitute investment advice and independent advice should be sought where appropriate. All information is current as of November 2014, subject to
change without notice, and may become outdated over time