Mission-driven investment platform Abundance is offering its “greenest ever social and affordable housing investment.” Liverpool Community Homes PLC is raising up to £6,850,000 to finance two green and sustainable developments. The development is for up to 37 new homes on the outskirts of Liverpool.
Abundance reports that these homes have been designed to “high environmental standards, far exceeding current standards and made possible by the innovative finance method.”
Estimates indicate that green measures will reduce each home’s energy demand by 80% to 93% compared with the UK’s average home, cutting tenants’ energy bills and “helping to tackle fuel poverty.”
Robert Macmaster, Director of Octevo Housing Solutions Limited, explains:
“From the outset, our ambition has been not only to help fix the dire shortage of quality housing for those in need, but to prove it can be done in a green and sustainable way. Our plan is to minimize the new homes’ energy consumption by using the latest insulation, lighting and water efficiency measures. We will then meet the energy demand as much as possible from renewable sources such as ground and air source heat pumps and solar panels. The outcome will be homes whose net energy demand from heating and electricity will be significantly lower than current standards for new build affordable housing. The home should be the treasure chest of living – it doesn’t need to come at a cost to the environment.”
It is Octevo’s strategy is rather than focus on the short-term gains typical of other housing developers, the social rental model provides secure long-term cash flows which also allows investment in low carbon measures by spreading the up-front costs over a longer period of time.
Bruce Davis, joint MDr of Abundance, says:
“Liverpool Community Homes shows we can create affordable homes that make lower carbon living possible for everyone. We need low carbon housing to help deliver Net Zero, but we can’t do that at the expense of affordability. Octevo has found a way to deliver both, and we are really excited that Abundance investors have made this possible. Together, we can make fuel poverty history!”
So as an investor what do you get?
As with all Abundance investments, Liverpool Community Homes PLC is raising money through tradeable Debentures, offering 6% annual interest for a 2.5-year term. The minimum investment is £5 and the debentures are eligible to be held in an Innovative Finance ISA so returns can be tax-free.
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