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Calder Valley Community Land Trust

Financial performance

The society aims to rent properties at Affordable Rents or lower to ensure that it can provide homes that are accessible to people in housing need. Small housing developments, when properly planned, generate income through rents and these rents cover the cost of managing and maintaining the properties as well as running the organisation.

Fielden Acre Share Offer

The primary purpose of The Fielden Acre Community Share offer is to purchase the residential houses that bookend the hall, securing these as affordable homes and ensuring that the entire site – all, houses and grounds – becomes a community asset in perpetuity.

In proposing the purchase, the society has commissioned a valuation of the entire site, undertaken professional building surveys of each element of the site and grounds. 

CVCLT aims to purchase the buildings by March 2021 and once this is complete, will carry out planned repair works and receive regular monthly rental income from the tenants.

Pre-offer finances

Prior to the Fielden Acre share offer CVCLT had brought in investment of £94,000 from a community shares issue in 2019 and expect to start paying interest on this to investors at the start of 2021. These costs are covered by rental income at Birks Court in Walsden

At December 2019, the society had total net assets of £170,766. This is made up of £94,147 in share capital and £76,619 of unrestricted funds.

How the project is funded

The cost of purchase and repair is £430,000 including fees. The table below shows a breakdown of the various funding sources being blended together to deliver the project.

Funding Source Target Status
Homes England £110,000 In Process
Community Foundation for Calderdale £100,000 Confirmed
BOOSTER Fund Community Shares £50,000 Confirmed
CVCLT Share Offer £170,000 In Process
Total £430,000

The Booster Fund is administered by Coops UK and funded by Architectural Heritage Fund and Power to Change. This fund provides equity investment in community share offers. CVCLT has secured £50,000 of Booster Funds to match community share funds raised for The Fielden Acre project.

The Minimum amount that is needed to raise through community shares is £150,000. This will generate £200,000 when matched by Booster. The Community Foundation loan can increase to £120,000 and can be used to cover any shortfall to the raise.

The Optimum amount that CVCLT aims to raise is £170,000 which, matched with Booster, provides £220,000 and will allow the society to complete the purchase and carry out the necessary repairs.

The Maximum CVCLT aims to raise through this offer is £220,000. When matched with Booster funds this will provide the society with £270,000 of community shares and will reduce the loan requirement from the Community Foundation to £50,000 for this project.

Use of capital

 The table below shows how the society plans to use the capital raised.

Purpose Amount
Purchase of two residential properties/storeroom/gardens £390,000
Repairs and upgrades to the properties/site and tree safety work £ 30,000
Fees £ 10,000
Total £430,000

The society considers The Fielden Acre purchase to be a relatively low risk proposition but investors must be aware that they are investing in Calder Valley Community Land Trust Ltd as a whole and need to familiarise themselves with the society’s business plan, which is available to download from the Ethex site.

The properties are in reasonable condition, are tenanted and have a good rental history in recent years. A recent buildings’ survey has identified repairs and upgrades that are required at the properties. These have been costed, are budgeted for and will be carried out as part of the purchase and repair of the buildings in early 2021.

Fielden Acre - Financial forecasts

There is an immediate and regular income stream for the society from rents from the two Fielden houses of £1,080 per calendar month. There is an allowance of 5% for periods when one or more of the properties might be empty between tenancies. This produces a net monthly income of £1,026 in year 1.

Income from rents is sufficient to cover the costs of insurance, management and maintenance of the properties and the grounds and after loan interest, there is a net annual surplus. This is reduced by depreciation of the properties and future interest on community shares is supported by the society’s income and expenditure account as a whole. The overall trading position of the society forecasts increasing cumulative surpluses over the 5 years of this plan.

Major repairs are managed through the society’s reserves.

For a more detailed set of forecasts for the Fielden Acre project and the finances of CVCLT as a whole please refer to the share offer document and the business plan, both of which can be downloaded from the Ethex site.

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