Whole Property Finance Model Friday 16th November 2018

WHO ARE WE However, it is our intention that our financing enables an expansion of the social impact of the organisations we work with. I hope that the following case studies will illustrate better how our approach has worked and is working in practice: | 1

OUR MISSION Our mission is to enable inspiring charities and social enterprises in the UK, to increase their social impact by providing them with simple, appropriate and flexible finance However, it is our intention that our financing enables an expansion of the social impact of the organisations we work with. I hope that the following case studies will illustrate better how our approach has worked and is working in practice: Social impact lies at the heart of our property finance strategy. We want to help charities and social enterprises thrive and grow their services. | 2

MEET THE SASC TEAM Benjamin Rick Co-founder and Managing Director Mark Bickford Investment Director Peter Morris Investment Director Amelia Sussman Head of Operations Terry Burke Head of Finance and Business Krishna Chokshi Investment Manager Sue Hainsworth Executive Assistance and SASC Administrator Gilly Orr Fund Development Director Toyin Miller Investment Manager Hermina Popa Investment Manager | 3

OUR INVESTMENTS | 4

OUR PORTFOLIO A SNAPSHOT OF OUR INVESTMENTS Our investees cover a broad geography, some operating at a very local level, and others with a national reach. Our investments are also spread over a range of social outcomes areas. CIF - The organisations we’ve invested in provide essential support and services to improve the well being of local residents. They develop the local economy, and they create positive social change for individuals in the community. CIF provides long-term, flexible loans in amounts that range from £250,000 to £2m. To date, CIF has made 15 investments and committed £13.6m TSIF - Offers a longer investment period, more flexible investment and repayment options, greater risk sharing and more dedicated support and guidance for investees from the start to the end of the investment journey. The fund offers loans from £250,000 to £3m to high impact social ventures in the UK, and has committed £14.5m to 11 investments. | 5

OUR AMBITION – IMPACT DRIVEN | 6

WHOLE PROPERTY FINANCE However, it is our intention that our financing enables an expansion of the social impact of the organisations we work with. I hope that the following case studies will illustrate better how our approach has worked and is working in practice: | 7

WHOLE PROPERTY FINANCE | 8

HOW IT WORKS | 9

HOW WE CAN SUPPORT YOU SASC works closely with organisations to provide an opportunity to acquire properties fit for purpose for the charities beneficiaries. Typically, this structure of finance has been most appropriate where: Local properties are available at appropriate prices An ability and resource to undertake property purchases over c. 18mths, and refurbishments Evidence of positive and collaborative relationships with local authorities, referral partners or commissioners Any potential void risks can be mitigated and managed Flexibility from a charity or social enterprise to explore the best lending structure | 10

HULL WOMENS NETWORK (HWN) When SASC met HWN, the charity had a portfolio of 105 properties but a waiting list of 230 women. So with a need to meet growing demand, HWN decided to take on social investment. INVESTMENT SIZE / £2,000,000 FUND / COMMUNITY INVESTMENT FUND The charity approached SASC, who has a track record of providing social investment to organisations in Hull. The £2m loan will allow HWN to purchase up to 35 properties to house vulnerable women and their children. Hull Women’s Network, based at the award-winning Preston Road Women’s Centre, provide safe homes for vulnerable women and their children in Hull. SASC provided a £2m loan to the organisation to enable them to expand their services and better support the demand for their services in the Hull area. Set up in 2004, Hull Women’s Network is part of a group of Hull-based organisations run by women and supporting women. Its services and activities include specialist domestic violence support, nursery provision, sexual health information and advice, training and volunteering opportunities, as well as access to safe and affordable housing across Hull. SASC has shared the investment risk with HWN and provided the option to refinance the 10yr loan based on the current purchase price of properties. “With access to safe, high quality housing, HWN helps women to break free from the abuse they suffer first time and this investment from SASC will greatly help our mission.” Lisa Hilder, Trustee at Preston Road Women’s Centre LOCATION / HULL, YORKSHIRE WHO BENEFITS / VULNERABLE WOMEN & CHILDREN FLEEING DOMESTIC VIOLENCE

FUND / THIRD SECTOR INVESTMENT FUND HOMES FOR GOOD Founded in 2013 by Susan Aktemel, Homes for Good is a social enterprise that meets the housing needs of vulnerable and marginalised individuals. INVESTMENT SIZE / £2.85M FUND / THIRD SECTOR INVESTMENT FUND SASC provided a £2.85m loan to a new subsidiary, Homes for Good Glasgow, using our innovative property finance structure. This will support the social enterprise to grow the portfolio of properties, creating a minimum of 50 homes. Homes for Good was created to provide quality homes within the private rented sector, with a focus on housing supply for people on low incomes. Susan recognised the need for an alternative approach to growing housing demand with the importance of access to appropriately located, high quality housing to enable individuals to address wider challenges such as mental health and recovery from drug and/or alcohol dependency. To support sustainable tenancies the organisation also provides dedicated tenancy support services, for those requiring it. SASC provided a £2.85m loan to the organisation to enable them to expand their accommodation services and better support the demand for social housing in Glasgow. The social investment structure was designed to address the specific needs of impactful, accommodation-based charities and social enterprises and to offer an alternative to the range of financing options currently available. “We are really delighted to welcome SASC as our investor in the next stage of growth within Homes for Good. We plan to acquire a further 50 homes with this significant investment, which will help us work towards our goal of owning 500 homes for vulnerable people on low income by 2022.” Susan Aktemel, Executive Director of Homes for Good LOCATION / GLASGOW WHO BENEFITS / HOMELESS & VULNERABLE INDIVIDUALS

Impact driven approach Partnership with our investees Social outcomes at the heart of every investment decision we make Simple and flexible finance So, I’d like to conclude with a summary of our investing philosophy, which I hope came to light through the case studies presented: We are first and foremost impact driven We work in partnership with our investees, to find the best solution that works for them, allows them to grow, without jeopardising their activities We are focused on the social outcomes of our interventions We aim to keep it simple, and we are flexible in finding solutions, whether those are blended finance (with grant component) or flexible repayment terms. | 13

ANY QUESTIONS? | 14