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Common Ground Against Homelessness

Common Ground Against Homelessness 2020 Share Offer

£500 minimum

Risk factors

All investment and commercial activities carry risk, and investors should consider whether Common Ground Against Homelessness (CGAH) is a suitable investment for them in light of their own personal circumstances.

This offer is not covered by the Financial Services Compensation Scheme.

General Investment Risks

CGAH wants to be fully open and transparent to its potential investors about the risks as well as the benefits of investment in community shares. CGAH wishes to make the following general points explicit:

  • The money you pay for shares is not safeguarded by any depositor protection scheme such as the Financial Services Compensation Scheme (FSCS)
  • This Share Offer is exempt from regulations under the Financial Services and Markets Act 2000 and Financial Services and Markets Act 2000 (Prospectus) Regulations 2019 and therefore you do not have the protection provided by these acts. This means that there is no right to complain to an Ombudsman; and this share offer has not needed to be approved by an approved person under the Act.
  • The shares are not tradable and the full value may not be returned if certain risks described below are realised.
  • The shares are an illiquid financial instrument which means you may not be able to get your capital back immediately or when needed.
  • CGAH provides for withdrawal of share capital after a certain point - see the Share Offer Document

The shares are illiquid, and the Board of Directors may not consider they are in a position to allow withdrawal if and when required, so you may not be able to have your money back when you request it.

The value of the shares may be written down so you may not receive all, or any, of your money back.


Operational risks

Failure to find suitable properties


Increase in suitable properties due to downturn in tourist market post Covid 19, especially former small hotels, B&B, which suit long term supported housing services

Short stay/holiday lets could have changed use for long term accommodation

First property identified and agreed with City Edinburgh Council as a suitable location. Full planning application granted.

Should the purchase of the Peffermill property not be possible, CGAH will find an equivalent property.

Failure of charity partner to find tenants


Period of economic uncertainty post Covid19 will see increased demand for affordable housing

Homelessness has already increased by 22% in Edinburgh since March 2020. Funding for the hotels in which homeless people are accommodated finishes in September 2020

Failure of charity partner to pay rent


Rowan Alba have secured revenue funding for this service, and are working closely with City of Edinburgh Council to provide long term supported accommodation for their client group.

Property Values do not meet funding liabilities or withdrawals


6 month notice on withdrawing funds will provide time to secure further shareholders.

The option of a capital repayment mortgage may be considered by the board if economic to do so.



Financial projections show a trading surplus

Underestimation of refurbishment costs


Built into the detailed costings, conducted by specialists in this type of conversion, are generous allowances to ensure this does not happen.

CGAH will appoint a competent project manager, and work with reputable builders to ensure the completion of the project.

Significant repairs


Over time, CGAH will build up a fund from Charitable funding sources to ensure against this risk.

Failure to purchase property


Should efforts to purchase a suitable property to execute CGAH's business plan be unsuccessful 12 months after closing the share offer, the charity will communicate with members about what we should do next, including possibly winding up the society and returning remaining funds to investors.

Applied for to date, of
£650,000 target

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