'It felt like there was an opening up of trusts making mission related investments, which we have been working towards for several years'
Ethical Property Company managing director Jamie Hartzell
The latest share issue from a social enterprise which provides office space to ethical businesses will fund a centre for human rights and social justice in London.
The Ethical Property Company raised £3.75m from its latest share issue, which opened in April 2010 and closed at the end of July.
The share issue was not open to the public, but to existing shareholders and professional investors. The investment offers a dividend of four per cent.
Some of the cash will fund the human rights and social justice centre in central London, in partnership with the Trust for London (formerly called City Parochial Foundation), which proposes to invest £1m.
The share issue will also fund a centre in Leeds for voluntary sector support organisations and 11 workshop units for ethical businesses in Brighton as part of the redevelopment of London Road market. This Brighton venture is part of a community asset transfer by Brighton and Hove City Council to the market traders based on the site.
Ethical Property Company managing director Jamie Hartzell said this latest share issue opened the door for charities to invest.
The largest investor was the Esmee Fairbairn Foundation, which invested £500,000. The Joseph Rowntree Foundation invested £210,000, bringing its total Ethical Property share holding to 500,000 shares. Of the 250 new investors, £800,000 came from existing shareholders, £480,000 came from Rathbone Greenbank and £400,000 from City Funds Morley Fund Management, a wholly-owned subsidiary of Aviva. A further £450,000 came from Triodos Bank customers. The total number of shareholders in the Ethical Property Company is now 1,365, Triodos Bank sponsored the share issue.
Hartzell said: ‘This share issue again demonstrates the strength of the Ethical Property investment proposition.
‘Despite the property crash our profitability has continued. The dividend we offer is a highly attractive proposition in the current market.
‘It also felt like there was an opening up of trusts making mission related investments, which we have been working towards for several years.’
...as Susan Boyle might have sung. On SocialEnterpriselive.com this week:
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Comments
London Road Market, Brighton
Great to learn that the London Road Market transfer effort continues post our involvement via the Advancing Assets for Communities programme, particularly as we move to publish dedicated guidance in respect of retail market transfer and management over the coming weeks.
Annemarie Naylor, DTA Asset Programmes Manager