This share offer is raising finance for 2 major development projects. Firstly, with planning secured for development of 8 affordable units to the rear of the Society's existing properties at 10 & 11A East Reach in Taunton, the group can now begin construction. They also have the option to buy the former Exmoor Ales site in Wiveliscombe, and plan to build 20 affordable residential units and work spaces.
The minimum target will require them to proceed more slowly, borrow more from banks and social lenders (2020 borrowing will be approved in principle before drawing down new share capital), and they will also need to plan to sell some of the new housing in Wiveliscombe at near to market prices in order to reduce borrowing requirements.
The optimum target requires that a larger amount of share capital has been raised - £445,000 – in addition to having offers of finance for any loans needed in 2020. This enables them to proceed more quickly, release more capital for share withdrawals, and sell fewer units in Wiveliscombe.
The maximum is similar, but may not require any property sales – in which case everything built may be available as affordable rental.