Golden Lane Housing launches bond to invest in homes for beneficiaries

GLH, the housing arm of the learning disability charity Mencap, says it hopes the seven-year bond will raise £11m

Golden Lane Housing service user
Golden Lane Housing service user

Golden Lane Housing, the housing arm of the learning disability charity Mencap, has launched a bond that will be listed on the London Stock Exchange, which it hopes will raise £11m to invest in 30 homes for 100 beneficiaries.

Investors in the seven-year bond will pay a minimum subscription of £500 and will earn 4.375 per cent interest annually, paid in two instalments in January and July. The offer period for potential investors is likely to close on 23 July, with the first payment to investors made in January 2015.

GLH, set up by Mencap in 1998, currently owns and manages 700 homes, providing housing for 1,320 tenants with learning disabilities. It also provides other services to tenants including adaptations to the homes to meet tenant needs.

In August last year, GLH said it had already bought four properties with the £10m raised through another five-year, 4 per cent bond.

Retail Charity Bonds plc was launched earlier this month by the social investment charity Allia in association with the financial services firm Canaccord Genuity. Bonds issued by the organisation are expected to be admitted to trading on the London Stock Exchange’s regulated market through the Order Book for Retail Bonds, meaning investors will be able to buy and sell the bonds.

Alastair Graham, director of GLH, said: "The bond will enable Golden Lane Housing to invest in much-needed housing for the people with learning disabilities who are currently living in housing that does not meet their needs, in the wake of a nationwide housing shortage.

"The houses and bungalows purchased from the proceeds of the bond will provide a positive and lasting legacy for people as well as future generations with learning disabilities."

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