Social and Sustainable Capital (SASC) said its Social and Sustainable Housing LP was co-designed with charities to ensure demand for investment, and it is already working with a number of high impact organisations looking to access funding in the coming months.

The fund is launching with over £26 million in commitments from 19 investors, including the Social Investment Business and Big Society Capital who provided the capital for SASC’s two initial funds in 2014. 

In addition to SASC’s original investors, the fund has attracted investment from Garfield Weston Foundation, CCLA Investment Management, The Esmée Fairbairn Foundation, Tudor Trust, City Bridge Trust, University of Edinburgh, Power to Change, Trust for London, Adlib Foundation and Barrow Cadbury Trust. Individuals representing SASC’s Board and Investment Committee have committed almost £1.75m to the first close.

Ben Rick, managing director of SASC, said: “We are proud to have created an innovative investment structure in housing that appeals to both borrower charities and investors. The fund will address a major social issue by increasing the stock of quality homes that will be available to communities for the long term.”

He added: “We are delighted to announce this significant first close, supported by both existing social investors and those entering the market for the first time. Fundraising is ongoing, and we are targeting a total fund size of £100m which will allow us to support 30 organisations to house 10,000 people over the next 10 years.”

Nick Temple, chief executive of Social Investment Business, said: “Back in 2014, Social Investment Business invested in SASC and both of their initial funds. We are hugely proud to have been involved in their development, and now during this next important phase with the Social and Sustainable Housing LP. We’re also very excited about the fund’s potential for impact on an important social issue, with the strength of partnership as a key driving force.”

Philippa Charles, director, Garfield Weston Foundation, said: “This innovative housing fund has been designed with and for the market; it meets a clear need and our Trustees like the fact it places decision making in the hands of organisations who know the beneficiaries best.”

Caroline Mason, chief executive officer at Esmée Fairbairn Foundation, added: “For many charities and social enterprises meeting the housing needs of those they support is difficult. This new fund sets a benchmark in how capital is made available to provide stable and long-term homes for people who do not have them. The investment structure offers clear benefits to both borrowers and investors, which is why it has already engaged the support of so many grant making trusts and foundations.”

James Bevan, chief investment officer of CCLA, said: “We recognise the opportunity to work in a collegiate fashion with experts in the fields of social housing and finance to generate strong long-term returns and address market failures.”

Hull Women’s Network, based at the award-winning Preston Road Women’s Centre, which provide safe homes for vulnerable women and their children in Hull will be the first recipient of the funding.

Lisa Hilder, trustee at Preston Road Women’s Centre, said: “We are delighted to be named as the first investee of this ground-breaking new fund. We have worked with SASC for the last four years and helped to pilot this innovative approach to creating safe homes for women and children fleeing violence and abuse. This investment will enable us to offer safe homes to an additional 49 families in the next 18 months and help them rebuild their lives. The funding will also increase the financial resilience of our organisation.”

Douglas Sloan, investment manager, Big Society Capital, said: “We are pleased to be investing into Social and Sustainable Capital’s new property fund.  Enabling more mission-led organisations to have access to safe, suitable and affordable housing is a key priority for Big Society Capital, and the approach that SASC has taken in creating the fund, with a focus on the needs of the charities, was a principal factor in our decision to make this commitment.”