CGAH will buy and refurbish properties in Scotland to allow their charity partners to fulfil their mission. The charity will identify the property they wish to acquire, having established the need for the service, and their revenue funding. Due diligence will be undertaken on each charity partner.
CGAH will then buy and refurbish the building, based on the needs of each partner.
In this first share offer, the building will be used as a home for life for homeless people. However, mindful of the interests of investors, due consideration is given at the time of refurbishment as to other potential uses of the building, to ensure a steady flow of income if needed.
CGAH will continue to look for further development opportunities in partnership with charities, with the aim of investing £1,000,000 per annum with a target of housing 15 street homeless people for life per annum, building up a stable balance sheet of a mixed property portfolio.
Properties will be let to charity partners on an internal repairing and insuring lease (IRI), with partners responsible for internal repair/modification as required. The leases will be long term and rentals increasing with inflation. These rental incomes will be used (after deducting operating costs) to repay capital and interest on the investments each year. If repayment requests exceed the amounts available from cash flow then the board will nominate the amounts to be repaid and to whom.
CGAH is responsible for the structural state and repair to the property. A budget of £5,000 has been set aside for property repairs per annum.
Overheads will be covered from rental incomes .