One of the UK’s largest housing associations is looking to attract new investors by highlighting the social benefits that come from its work on a ‘social stock exchange’.
Places for People has joined on a newly set up exchange designed to open financial markets to investments with a social impact by improving access to businesses with strong environmental and community ties.
Although there are no shares traded on the social stock exchange it is intended to demonstrate to investors full, transparent disclosure of business listed on it.
To be admitted, members have to produce social impact reports that are assessed by an admissions panel made up of industry experts. The 62,000-home association is one of 11 founding members that has committed to on-going disclosure and reporting.
‘There is a desire from some holders of investment capital to look to organisations they can feel proud about being associated with,’ explained Chris Martin, company secretary and legal services director at Places for People.
‘It’s [businesses on the exchange] got to be balanced between making a good commercial return for investors or lenders and the money invested producing some value beyond pure profit,’ he added.
‘This will bring us into contact with, quite conceivably, a lot of new people, and that’s got to be a good thing,’ said Mr Martin.
Pradeep Jethi, chief executive officer of the Social Stock Exchange, said not every development company involved in social housing will be right for the exchange.
Readers’ comments
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As if HAs don’t already have enough things to waste their valuable time a resources on… I must congratulate PfP for their innovation on find this rather obsure route to do anything but building more homes.
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