UK Social Housing Fund

UK Social Housing Fund

Covid-19 has displayed devastating consequences nationwide leaving a large subsection of the population in disadvantaged situations contributing to greatly lengthening the waiting lists at Housing Associations and Charities.

In the 2020 March budget, the government announced £12.2bn for the next five-year AHP, which is set to run from 2021-2026. There was a further £1bn of support for renters by increasing the level of housing benefits, so that the local housing allowance will cover at least 30% of market rents in many areas in the UK.

THE MARKET LANDSCAPE IN NUMBER

1 IN 7

Are living unaffordable, Insecure or unsuitable home amounting to more than 8M people in England

More Than 3.6 m

Are living in overcrowded homes, 2.5M are living with paren, with friends or expartner.

340,000 New HOMES NEEDED EACH YEAR

Including 145,000 social homes to meet the pre-covid housing demand (National housing federation, 2019. This must include:

  • 90,000 homes for social rent
  • 30,000 homes at intermediate affordable rent
  • 25,000 shared ownership homes

FUND CONCEPT

2-YEAR SOCIALLY RESPONSIBLE INVESTMENT WITH AN GOVERNMENT-BACKED PROPERTY LEASING INVESTMENT WITH AN PROJECTED 7% YEARLY INVESTMENT YIELD

Total Project Return

Projected ROI 21%*

Expected Return

Estimated 7% per annum
Targeted 7% per annum
Projected additional 7% return on capital appreciation after 2 years.

Project Exit

2 years

No representations or warranties of any kind are intended or should be inferred with respect to the economic return or the tax consequences from an investment in the fund. The information contained herein is subject to change without notice. For Accredited and Institutional Investors only.

*The Return of Investment (ROI) is the expected annual rate of return on the investment and has been calculated based on the Fund Manager’s assumptions of a range of variables including rental growth, net of taxes, fees and all expenses. This is an internal performance target which the Fund Manager aims to achieve as at the date of this document. This target is not based on past performance it may be subject to changes and cannot be guaranteed.

SOCIAL HOUSING LEASING MODEL

LOCAL AUTHORITY / GOVERNMENT

CHARITY/HOUSING ASSOCIATION (TENANT)

RENT

30-YEAR CPI LINKED LEASE

PROPERTY OWNER/ LANDLORD

LOCAL HOUSING ALLOWANCE (RENT) IS REGULATED BY THE LOCAL AUTHORITY, WHICH IS PAID DIRECTLY TO THE CHARITY/HOUSING ASSOCIATION

No representations or warranties of any kind are intended or should be inferred with respect to the economic return or the tax consequences from an investment in the fund. The information contained herein is subject to change without notice. For Accredited and Institutional Investors only.

PROPERTIES PURCHASE PROCESS

  • Offer Submission
  • Ensure that documentations such as valuation report, offer prospectus
    and charity lease are in place before an offer is submitted
  • Property Inspection
  • Inspect all properties in the portfolio alongside representives
    of the charity organisation and relevant property managers
  • Formal Discussion with Charity Organisation
  • Discussion with the charity organisation will take
    place prior to the purchase of any asset.
  • Financial Analysis
  • Analysize for potential for substantial capital growth
  • Source Properties
  • Shortlist of properties below market value

No representations or warranties of any kind are intended or
should be inferred with respect to the economic return or the
tax consequences from an investment in the fund. The information contained herein is subject to change without notice.
For Accredited and Institutional Investors only.

WHY US

  • CR Global Investment VCC is one of the first Singapore registered VCC to launch an ESG Fund related to UK Social Housing.
  • Our partnership with charity & housing associations we will work closely with the charity & housing associations to ensure that the shortlist of property that we intend to acquire fits their leasing requirement
  • Likewise, we will also work closely with the reputable valuation company and in house analyst to ensure the property shortlisted fits the investment return.
  • Upon agreement with the vendor, we will purchase the property in full by cash to reduce the risk exposure
  • All misc. cost will be included in the property purchase. Maintenance cost will be covered by the charity & housing association, this clause is reflected in the leasing document.
  • The property portfolio acquired will be held under our UK limited company which is 100% owned by the CR Global Investment VCC fund
  • Investment returns derived from strong real estate fundamentals, stable long term tenants and active asset enhancement.

OUR INVESTMENT ADVANTAGE

– On completion of each portfolio CR Global enters a 30-year index linked lease with a government backed housing association or charity

– No monthly payment voids

– No internal repair costs – No furnishing costs

– No legal issues or disputes with tenants

– In the unfortunate event of the tenant becoming unemployed/sick, the leasing partner will always pay the rent

– No management costs- taken care of by lease partners

– No marketing costs/tenancy finder fees

– 16 million households are in need of social housing – 500,000 more than the 1.16 million households recorded on official waiting lists (NATIONAL HOUSING FEDERATION, SEPTEMBER 2020)