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YorSpace

Invest in YorSpace CLT

Investment details

Financial performance

The YorSpace 2019 share offer will enable YorSpace to meet local housing need while offering an attractive rate of return for investors of 2.5%. By using share funding to purchase land and grant a long leasehold, the Mutual Home Ownership Society tenant is able to ask residents for smaller deposits

Business Model

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.

Profit and Loss

Profit & Loss
Year 1
Year 2
Year 3
Year 4
Year 5
Sale of Lease £695,368
Less Cost of Sales £695,368
Less Other Running Costs (£500) (£513) (£525) (£538) (£552)
Plus Grants £302,046
Plus Interest Receivable £20,662 £20,221 £19,766
Less Share Interest (£11,875) (£12,172) (£11,868)
Less Corporation Tax (£57,294) £97 (£1,472) (£1,427) (£1,396)
Net Profit £244,252 (£415) £6,790 £6,084 £5,951
Money owed by MHOS £695,368 £695,368 £680,850 £665,890 £650,476
Cash at Bank £84,299 £26,493 £61,245 £70,071 £78,928
Net Current Assets £27,005 £26,590 £59,773 £68,644 £77,533
Balance Sheet Total £722,373 £721,957 £740,622 £734,534 £728,008
Community Shares £475,000 £475,000 £486,875 £474,703 £462,227
Profit and Loss Reserves £247,373 £246,957 £253,747 £259,831 £265,781

Cash Flow

The table below summarises the combined cashflow of YorSpace and Lowfield Green Housing Cooperative (MHOS) for the first five years of the project. This shows that total member contributions to Lowfield Green Housing Cooperative (the MHOS) are sufficient to cover the cash out after the development period (years 1 and 2) including loan repayments to YorSpace and mortgage repayments.

Cash Flow
Year 1
Year 2
Year 3
Year 4
Year 5
Community Shares Invested £475,000
Grants to YorSpace £302,046
Bridging Loan/ Mortgage £1,634,997 £6,703
Capital Grants £855,000
Total Lowfield Green Resident Contributions £259,674 £162,133 £162,692 £163,447
Total Cash In £3,526,717 £168,835 £162,692 £163,447
Cost of Land £300,000
Fees £395,368
Building Work £2,749,671
Total MHOS Running Cost £15,155 £15,534 £15,922
YorSpace Running Costs £500 £513 £525 £538 £552
Mortgage Repayments £96,914 £96,914 £96,914
MHOS Resident Equity Withdrawal £3,004 £5,996 £8,925
Corporation Tax £57,294 £97 £1,472 £1,472
Community Shares Repaid £24,344 £24,344
Total Out £3,445,539 £57,806 £115,501 £144,799 £148,084
Net Cash Movement £81,178 (£57,806) £53,334 £17,893 £15,363

 Note

  • Forward-looking statements are merely unaudited projections based on a number of assumptions and should not be relied upon as indicators of future performance. There is no guarantee these projections will be achieved.

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