Great news – we’ve raised the minimum that we need! But we’re not finished just yet…

Posted by Rob Greenland.

Over the next couple of months we’ll aim to answer questions that people have asked us – on social media, at events we’ve attended etc.  If you have a question, please get in touch and we’ll answer it on here.

It’s important, if you’re considering investing, that you don’t rely on information we share in these blogposts. If you’re considering investing, please visit either our Ethex profile, or the share offer page on our website.  There you will find detailed information on the share offer, our plans, our more detailed business plan, and the Rules of Leeds Community Homes.  And of course, if you have any questions, please get in touch with us.


Earlier today we found out that we’ve raised £200,000 through our community share offer!

This is great news as £200,000 is the minimum that we need to go ahead with our first project, to create 16 permanently affordable homes on a development in Leeds’ new Climate Innovation District.

But we haven’t finished just yet….

Our target for the community share offer is £360,000 – as this is the total amount of finance that we require to deliver this first project.   (We will also take out short-term bridging loans – for us to acquire the nine homes that we will then sell on.   All the information is in our share offer document and business plan – both available on our website).

By raising £200,000, we are in a position to borrow the remainder of what we need – approximately £160,000.  We’re confident that our business model will enable us to service this debt – primarily through rental income.

Nonetheless, it would clearly be beneficial to us to not have to borrow quite so much – or not at all.  Interest rates are historically low – but of course that’s not guaranteed over the 25 year lifespan of a long-term loan.  And even at their current low level, the initial interest rate that we would pay on a loan (somewhere around 4%) is higher than the interest that we have offered to investors (2% from 2020).  Interest would of course be payable on the loan as soon as we draw it down – whereas interest on investments by shareholders won’t be offered until 2020 – by which time we will be generating rental income from the nine homes that we’re retaining for social rent.

So we’re delighted that we’ve reached a position that means we can go ahead – but we’re going to keep working to attract more investment – before our offer is due to close on 19th December.

So if you’ve invested, we’d like to say an enormous thank you!  And if you haven’t invested as yet, but are in a position to consider it, all the information that you need, in order to make an informed decision, is available via our Ethex profile or via our website.


 

It’s important, if you’re considering investing, that you don’t rely on information we share in these blogposts. If you’re considering investing, please visit either our Ethex profile, or the share offer page on our website.  There you will find detailed information on the share offer, our plans, our more detailed business plan, and the Rules of Leeds Community Homes.  And of course, if you have any questions, please get in touch with us.