A new property acquired & another share offer
Daniel Brewer shares the latest news from Mustard Seed Property – including their latest property purchase and social impact report.
I’m very excited to announce that MSP has finally managed to complete the purchase of its latest property right in the heart of Redruth. Contracts were signed, ‘social distancing’ suitably observed, and our ambition for this property to create a true hybrid, between a shared house and independent flats can now be advanced.
Further information will be available soon, including a detailed planning application that we are in the process of completing.
The total cost of the project is £750,000 and whilst MSP could do it in phases with the available finance, it would be beneficial to do it in one go. So MSP needs to raise a minimum of £150,000 of further equity.
It is planned to launch the new share offer in June, with a target of £600,000, as MSP is already lining up another property and another partnership. Details of the new share offer and how you can take part will be posted on our Invest page in the coming weeks.
We recently published our social impact report for 2019. The report outlines the impact being delivered by St Petrocs and Karrek specifically, detailing improving housing opportunities and progression to work as well as resilience against homelessness. Eight people were supported last year by St Petrocs and 55 people received tailored support from Karrek. Also included are the results of a survey of investors that the Mustard Seed Property Community Benefit Society carried out to help understand their connections to Cornwall. 57% of investors said that Community Leadership was their top reason for investing. You can read more about the social impact being delivered and the results of the survey in the report.
I couldn’t finish without mentioning these fast moving and unusual times, when it is understandable that the coronavirus situation is having an impact on St Petrocs, Mustard Seed and Karrek. The main impact of course being on front-line staff. Reassuringly, income levels are mostly unaffected, although costs of supporting those in need have increased, for example the outlay relating to additional cost items such as personal protective equipment. As we are more than just a landlord, our response has been to waive the imminent rent increase to St Petrocs, which will save them around £1,000 over the next year.
Lockdown as a result of COVID-19 has also meant that the refurbishment of our house in Helston has had to be put on hold, just ahead of nearing completion. However, we are confident that as soon as lockdown restrictions are lifted, this improvement work will be finished on budget.
Finally, please visit St Petrocs website, to find out more about the appeal they have launched to help them support homeless people through the crisis.