London CLT Big Potential Presentation 17 th March 2016

Investment Proposition Target£450,000 Community Share Offer Features Withdrawable shares Option of loan stock above £100,000 TimingLaunch: Q | Close: Q Expected Return5% p.a. from 2017 Term 10 years Exit: capital repayments from Minimum Investment£100 Applications to datec. £10,000

Sources: 1, 2 DCLG; 3 ONS What’s the Problem? London is unaffordable 7-31 Median house price to median earnings 1 15%-30% Renting has doubled in 10 years 2 48%-78% Median earnings spent on rent 3 London's housing market fails most Londoners Weaker communities Instability for families A less competitive capital

The London CLT Solution… o Land held in trust by, and for, the community in perpetuity o Re-sale values controlled by covenants to maintain affordability o Disarm speculation and re-imagine houses as homes for life Sell homes at prices linked to median incomes

Our Story o First deal at St Clements: 23 homes o Homes for sale from June 2016 o at c. one-third of the open market priced homes next door o £600,000 surplus to London CLT

Where Next? Lewisham East Wick & Sweetwater Newham Tower Hamlets

Social Impact o 184 homes in the pipeline, for over 700 people o 1,500 members – a healthy and growing membership o Community voice in development

Business Case o 184 homes in the pipeline o 90% turn-key with partners (reducing financial risk) o £25,000 surplus per home delivered (range: £10,000 - £30,000) o Balance sheet protection for investors (£450k floor) o £450k = £130k Lewisham pre-development + 2 years £160k o Min £150k = Lewisham OR 1 year pursuit of other site(s)

This is the Start o 184 homes & 727 people over 10 years = 0.005% of London’s 3.5m homes 1 = 0.008% of 8.6m Londoners 2 o Across the Atlantic, Champlain Housing Trust 3 = 2,765 homes (1.15%) = 230 times the % of population of LCLT 4 = 5,530 people (0.9%) = $310m assets under management o It’s not about the bricks and mortar – that’s the tool o It’s about what the investment enables us to build Sources: 1 Valuation Office Agency; 2 GLA; 3 CHT Annual Report 2015; 4 Vermont Atlas

Investment Proposition Target£450,000 Community Share Offer Features Withdrawable shares Option of loan stock above £100,000 TimingLaunch: Q | Close: Q Expected Return5% p.a. from 2017 Term 10 years Exit: capital repayments from Minimum Investment£100 Applications to datec. £10,000

Big Potential – the mechanics Two stages – preliminary and investment plan C. 7 months (Aug 2015 – Mar 2016) Six main areas: governance and leadership; financial performance; market potential; quality and impact; financial control Chose Resonance as our provider

Big Potential – the value Content – enlarging our knowledge, plugging gaps Process – asking the right questions from the forms, onwards Partner(s) – benefits of an experienced external advisor – and their networks (Self) confidence and credibility

Contact London CLT Andy Schofield Housing Director Watch us on the BBC Sunday Politics Show here: Read what the London Evening Standard thinks here.here

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