SASC IS AN IMPACT-LED SOCIAL INVESTOR THAT WAS ESTABLISHED IN 2012, AND HAS PROVIDED MORE THAN £25M TO OVER 20 CHARITIES AND SOCIAL ENTERPRISES.

Housing FundSOCIAL AND SUSTAINABLE CAPITAL

ASSET MANAGER OF THE YEAR

We recognise that for many organisations, housing their beneficiaries is increasingly difficult. In 2017, based on our discussions with charities and social enterprises in this sector, SASC designed a structure that:• Enables organisations to provide housing for their beneficiaries • Absorbs the risks associated with buying or renting property• Gives the borrower the benefit of long term asset ownership• Satisfies our investors regarding risk and return.

The SASC Housing Fund is designed to provide small and medium-sized charities and social enterprises, with the finance to fund 100% of the property purchase plus associated costs, without requiring fixed term mortgage-like repayments. It gives these organisations the opportunity to manage a portfolio of properties of their choice with very little risk, and with the option (but not the obligation) to refinance the portfolio in 10 years’ time at a 15% discount to market prices (subject to repaying a minimum of 75% of the amount borrowed).

socialandsustainable.com

SASC

Social and Sustainable Capital LLP is authorised and regulated by the Financial Conduct Authority (FCA number 588445) and is registered in England and Wales (Company Number OC378659) registered address: 4th Floor, Reading Bridge House, George Street, Reading RG1 8LS

CONTACT2nd Floor, Euston House

24 Eversholt Street London NW1 1AD

020 3 874 3330

info@socialandsustainable.com

HOW IT WORKS

SASC provides a loan facility for a ten-year period during which the borrower:

1. Sources and purchases properties(typically over the first year toeighteen months)

2. Manages the properties and getspaid for doing so over the life of thefacility

3. Pays SASC rent receipts lessinsurance and maintenance costs

4. SASC takes a legal charge over eachproperty purchased in the portfolio

At the end of the ten-year facility period the borrower has the option to:

1. Repay 85% of the value of theproperty portfolio (independentlyassessed) subject to a minimum of75% of the initial loan or

2. Return the property to the Fundin the event that it is unable to/chooses not to repay

THE TIME TAKEN BY THE SASC TEAM TO UNDERSTAND THE POTENTIAL SOCIAL IMPACT THAT COULD BE UNLOCKED BY OUR WORK WAS A KEY COMPONENT WHICH LED TO THIS INNOVATIVE AND EFFECTIVE MEANS OF PROVIDING SAFE HOMES FOR WOMEN AND CHILDREN FLEEING VIOLENCE AND ABUSE.

Lisa Hilder, Hull Women’s Network

SASC STRUCTURE CONVENTIONAL FUNDING

What We Will Fund

SASC will fund 100% of the purchase price of the properties plus all transaction costs (including SDLT and the any staff costs of acquisition strategy)

Typically max 70% LTV

Cost Of Funding

Upfront Arrangement Fee: none

Running cost: For ten years, the borrower passes through all rents received on properties funded by our investment less: • insurance costs• maintenance costs• management fee retained by

the borrower.

Legal costs: we contribute up to

£10,000 for borrower legal costs.

Upfront fee: bank charges will vary

Running cost: interest plus capital repayments of loan

Legal costs: (bank charges vary)

Performance Risk

SASC takes all void risk, non-payment risk and rental income risk (e.g. housing benefit changes)

Borrower takes all performance risk

Property Value Risk

Borrower may end up repaying more or less than the amount initially borrowed in year ten. Borrower also has the right to hand properties back to SASC and the loan will be written down to nil.

Borrower takes all property value downside and upside

Balance Sheet Treatment

Assets and related loans appear on borrower’s balance sheet

Assets and related loans appear on borrower’s balance sheet

Other Benefits

Ability to provide beneficiaries with housing whilst getting paid for doing so and taking no risk.

Ability to buy properties out of the structure through the life of the transaction.

PURCHASE PROPERTIES

LEASE PROPERTIES

RENT RECEIVED

BORROWERpays insurance

& repairs; retains a management fee

BENEFICIARIES

3

2

4

1

5

DRAW LOAN FACILITY

NET REVENUE PAID QUARTERLY