A number of investors including, Big Society Capital, Greater Manchester Combined Authority and the Church of England鈥檚 Social Impact Investment Programme have backed a fund managed by UK social housing investment manager Social and Sustainable Capital (SASC).
SASC said it has raised an initial 拢35m (鈧�35m) for Social and Sustainable Housing II (SASH II), a newly launched fund seeking to raise 拢125m.
SASC said SASH II鈥檚 first-close investors also include Scottish National Investment Bank, Ceniarth, and Ogelsby Charitable Trust, adding that it is already working towards a second close that is expected to include both new and existing SASH investors.
The Church of England鈥檚 Social Impact Investment Programme said it has committed 拢2m to SASH II. Details of the other investors鈥� contributions are currently unknown.
Vanessa Morphet, the head of the Church of England鈥檚 Social Impact Investment Programme, said: 鈥淥ur investment in SASH II will support social housing charities to own their properties, enabling them to provide the right combination of safe and stable accommodation and support services to vulnerable people, and to invest in the sustainability and energy efficiency of those properties over time.
鈥漈here is a clear alignment with the mission and social and environmental goals of the Church鈥檚 Programme.鈥�
SASH II, SASC鈥檚 second housing fund will enable the manager to continue providing loans to social landlords by helping over 30 organisations purchase 1,000 properties.
The first fund, launched in 2019, allocated 拢64.5m to 20 organisations, SASC said.
Ben Rick, Co-Founder and CEO of SASC said: 鈥淪ASH was co-designed with social landlords and is an investment structure that has significant appeal to both borrowers and investors.
鈥漌e are delighted at the success of the first fund, and the pipeline of opportunities that has driven the launch of fund two.鈥�
Susan Campbell, investment director at Scottish National Investment Bank, said: 鈥淭he bank鈥檚 cornerstone investment in SASH II aligns with our mission to invest in places and regeneration, to reduce inequalities and improve outcomes for people and communities.
鈥淪everal Scottish social sector housing organisations have already benefitted from social investment from SASH, and this follow-on fund will enable more organisations across Scotland to provide housing for greater numbers of people who need support.鈥�
Stephen Muers, CEO at Big Society Capital said, 鈥淲e have invested in SASC funds since 2014 and our support for SASH II underlines their role as a leading manager in the social investment sector. We invest into structure like these because they can offer investors the opportunity to create attractive risk-adjusted returns in an inflationary environment, a clear path to exit, and lasting impact.鈥�
Zamo Capital, an organisation that invests in and alongside general partners, made its first investment in SASC in 2020.
Jim Roth, founder and managing partner of Zamo Capital said, 鈥淲e identified an opportunity to invest in SASC so they could build out their lending structure for social housing.
鈥漈he launch of the second fund in the series demonstrates how much has been accomplished. We look forward to providing the additional support that allows them to build on this success in the coming years.鈥�
Shaun Needham, CEO of Target Housing, one of SASH鈥檚 largest borrowers, said: 鈥淥wning gives total flexibility and Target has grown far more resilient as a result. We are able to deal with issues on a much bigger scale than ever before as the loan allows us to expand our housing provision.鈥�
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