The "Everyone In" fund was launched by Resonance, leading social impact investment company, with an initial investment of £12.5 million and has a target fund size of £15 million. Initial funding has come from Greater London Authority and Big Society Capital.
The fund was developed following the rise in rough sleeping in London over the last year and the emergency action as a result of the pandemic that saw nearly 15,000 people being temporarily accommodated in hotels to protect them from the risk of COVID-19.
The fund will focus on purchasing affordable homes in London with the aim of providing 50 homes for those sleeping rough on London's streets.
Nacro, a leading registered social landlord and charity, will partner with the fund and will work to acquire properties and then lease them to the charity to provide individuals who are currently rough sleeping, or in a hotel or hostel accommodation with a settled home.
Pinsent Masons advised Resonance throughout the process, ensuring an effective legal framework was implemented to support the future growth of the fund and enabling it to meet its objectives. Ian Warner, funds partner at Pinsent Masons, led the team of advisors which included Natalie Harris and Leila McDougall.
John Williams, Investment Director & Head of Property Funds at Resonance commented:
“This investment from the Mayor of London, Sadiq Khan, allows Resonance to extend its long-running homelessness property fund initiative in London to help reach the specific and urgent need arising from the pandemic – helping provide move-on accommodation for individuals who have been temporarily housed in hotels and other emergency accommodation, and where there is now a historic opportunity to help prevent a return to the streets by providing a better way forward.
“Impact investment in this area means that properties can be made available for the long run to help this need, and attract other investors who want to back solutions to meet these issues.”
Ian Warner, lead partner at Pinsent Masons said:
"This has been another fantastic fund to work on with Resonance and it is a shining example of how funds can be used to help the most vulnerable in our society. With some figures reporting that over 10,000 people in London spent a night without shelter between April 2019 and March 2020 (a 21% increase on the prior year) it is clear that more needs to be done to support people in this situation. Investment managers such as Resonance are taking fantastic strides towards providing sustainable and long-term help and I am looking forward to seeing this fund, alongside the others they manage, develop over time and the life-changing impact that they have."
This 'Everyone In' fund is the fifth impact property investment fund, managed by Resonance, which the firm has advised on. These funds have helped house thousands of vulnerable people, including the recently launched 'Women in Safe Homes' fund.