The Real Lettings Property Fund, which is the largest impact investment fund in the UK, is managed by Resonance in partnership homelessness charity St. Mungo’s Broadway.
An impact investment is defined as one which has a measurable, beneficial social or environmental impact alongside a financial return for the investor.
Launched in mid 2013, the fund buys homes to let to homeless families in London with dual aim of delivering both financial returns and positive social impact.
Big Society Capital and the City of London Corporation are the two major backers which have upped their holdings, by £10m to a total of £15m and £500,000 to £1m respectively.
According to Resonance the multi-million pound commitments demonstrates the confidence investors are building in the strength of the fund.
Since launch the fund has acquired 219 homes with 82 properties already handed over to Real Lettings to match with a homeless person or family. So far, 144 individuals and children have benefitted.
“The problem and its solution are not just confined to London,” Daniel Brewer, MD at Resonance, said. “It’s an exciting time for the fund as we now have three investors who have increased commitments to this currently London focused initiative. We’re now also planning to roll out another phase of the project for next year, looking to partner with local authorities across the UK to help homeless individuals and families through this impact investment approach.”
Brewer said the key to the success the fund has enjoyed so far is its proven ability to source properties that are suitable for those who need them, at a price that makes sense from an investment perspective.