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Common Ground Against Homelessness

Financial performance

Common Ground Against Homelessness are looking to raise £650,000 in order to purchase and refurbish a property to be leased to an organisation tackling street homelessness in Edinburgh.

Investment proposition

Common Ground Against Homelessness (CGAH) are offering a headline rate of up to 5% interest per year, but investors can choose to accept less if they would rather CGAH reinvest more money into their core work. 

Common Ground will start accruing interest no later than the 28th of March 2021, and people can make requests to withdraw funds from no later than 28th March 2024. 

Interest will be accrued and credited to your share account, to be paid out to you whenever you withdraw your lump sum investment. Interest will not be compounded year-on-year.

Key financials

Please see below for the key high level  financials relating to this share offer. Please see the Common Ground Business plan for more detaileds finacial data 


CGAH Projections do not include fundraising targets as yet from grants and trusts (The Society's charitable status application is pending with OSCR). CGAH have had several positive discussions with Trusts who are interested in the project, and keen to donate. In the interests of complete transparency for investors, these have not been included, but will make CGAH more financially secure once charitable status has been achieved.

Business model

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 .

Commercial lease

As landlord, CGAH will enter into a commercial lease with their charity partner for the tenancy of the property. This will be agreed with the partner charity prior to entering into negotiations for a property. No property will be bought speculatively but only to meet an identified and costed need.

The charity partner will be able to pay this commercial lease from the monies received by the amount it is reasonable to expect those accommodated by the charity to expect from the Local Housing Allowance. This provides security for the charity who know that the rent they receive will meet their liability and that if the circumstances of their tenant change they will not face homelessness by not being able to pay.

The current Local Housing Allowance is £94.82 per resident. (

CGAH's potential first property has accommodation for 9 residents so a local Housing partner will receive £44,376 in rental which will be available to pay CGAH lease payments.

The Commercial Lease rates will be set at around 105% Local Housing Allowances rates. This amounts to £46,584 p.a. for the first property, with increases after 5 years. This has been modelled on previous Local Housing Allowances rates for the past 10 years.

This rental income will cover the CGAH outgoings being some overheads then the remainder available for capital and interest payments It is hoped that CGAH will also build up a small trading surplus which can be invested in further properties.

CGAH's overheads are minimal, as Common Ground currently comprises the 3 board members, however a budget of £5,000 is planned for repairs, and £2, 800 for insurance, accounts and audit increasing with expected inflation.

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