YorSpace expects to raise between £365,000 and £500,000 from the 2019 Community Share Issue. The £475,000 target is based on their capital requirement to purchase and pre-develop the site at Lowfield Green and provide them with working capital to be used as seed funding for future developments.
The YorSpace business model is based on lending Lowfield Green MHOS the money for the premium over 30 years at an interest rate of 3%. The interest from this loan will cover costs and interest on share capital. The repayment of the premium will enable them to repay investors. As they are recycling a grant, YorSpace make a profit of £244,252 in their first year and consistently between £6,000 and £5,000 over the next 10 years. The table below gives headline figures, but shows that interest of 2.5% can be paid on their shares and allows withdrawal of 5% a year after 3 years.