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Financing Community Ownership

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Thank you Heart of England Co-operative Society!

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We are delighted to announce that the Heart of England Co-operative Society has invested £10,000 in our ICOF Community Capital (ICC) loan fund, to help pioneering communities thrive.

The ICOF fund aims to provide loan capital to support both new and growing co-operative and community businesses that provide social and environmental benefits.

A recent market report said that in 2019 there were 9,000 community businesses operating in England, employing 33,900 people, with a further 205,600 volunteers – an increase of almost two-thirds on the previous year making an estimated £890 million contribution to the economy.

Ali Kurji, Chief Executive of the Heart of England Co-operative Society, said: “Our roots as a co-operative society stretch back to 1832. We started from humble beginnings – being founded by a group of nine ribbon weavers who opened one shop in Coventry.

“Today we operate a network of 35 Food stores and 15 Funeral homes and it is thanks to the co-operative movement that we have been able to continue building our Society over nearly two centuries.”

“By investing in the ICC we are giving back to the co-operative movement, giving local communities the same opportunity to take ownership of their own local assets – whether it be a pub, a shop, a local creche, a recycling business or a housing co-operative.”

“This in turn will help provide training and employment opportunities and regenerate communities and build thriving businesses, with people able to spend on a wide range of facilities in their local areas.”

Tim Coomer, Business Development Manager at Co-operative & Community Finance said: “We are absolutely delighted to receive the investment from  Heart of England Co-operative Society, which will help us support more communities to take control and deliver local solutions to meet local needs as a co-operative.”

“The ICC fund has lent over £3.5m so far and this investment will enable us to do more, especially at this time when we need to do all we can to get our community businesses moving again.”

 

Volunteers for Whats for Tea organised by The Hive in Winsford

A Tale of Two Pubs

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[photo: Volunteers for What’s for Tea? organised by The Hive in Winsford]

The last two loans released by Co-operative & Community Finance to pubs were to very different enterprises in quite different communities. One is the Cornwood Inn near Ivybridge which is the only pub in a remote village in the Dartmoor National Park. The other is The Hive in Winsford (formerly called De Bees), a music venue in the heart of an industrial town in Cheshire. What links them is that now they are both owned and controlled by their communities.

Both pubs received support from the More Than A Pub programme, which provides free advice and webinars, bursaries, grants and loans to communities seeking to buy their local, as well as those who are already trading. The programme is funded by Power to Change and is delivered by Plunkett Foundation working in partnership with Co-operative & Community Finance and the Key Fund.

They were two of the last to receive this specific package of support before the programme was paused to refocus support on the needs of existing community pubs severely affected by the Covid-19 pandemic and the lockdown.

By coincidence both pubs were previously owned by the pub management company Enterprise Inns. Another coincidence is that both community action groups gained access to their pubs before the transfer of ownership to the community benefit society was completed.

Rural

Cornwood InnThe Cornwood Inn was bought in September 2019 by a group of benefactors to prevent the premises being sold at auction. The community benefit society was registered in December and a community share issue was held that attracted over 300 investors. This, together with the grant and loan from More Than A Pub, allowed the transfer to community ownership to be completed in March, just after Covid-19 lockdown had started.

Nick Pound, one of the directors of Cornwood Inn Action Group, said: “Community ownership is going to make a massive difference. The pub had been woefully neglected. It often had poor food and indifferent beer due to a series of short-term temporary managers. When we reopen we will be sourcing local beers and local food.”

The group had been doing some refurbishment and opening the pub for special occasions run by volunteers. It was in the process of appointing a manager and chef when everything was put on hold. The pub is currently shut and has invited the local shop to use its freezers for extra storage.

Urban

In May 2019, community benefit society The Hive Live was granted a temporary tenancy for De Bees music venue while they raised the money for the purchase, which was completed in January. The premises was closed for refurbishment when lockdown started.

Doorstep SerenaidUnlike Cornwood, The Hive has been buzzing with activity over the last month. It has been livestreaming performances from the homes of local musicians. It has also developed a new service called Doorstep Serenaid whereby you can book a musician to sing a few songs 2 metres from someone’s doorstep with a personal message such as ‘Happy Birthday’ or ‘Missing You’. 75% of the money raised goes to the local hospice.

It has also launched a new local delivery service for freshly cooked meals and essential groceries called What’s For Tea? specifically designed to meet the needs of vulnerable isolating people.

Damon Horrill, a founder member of The Hive Live, said about demand: “It’s really taken off. We have delivered over 1,000 meals so far and demand is still growing. There are a lot of furloughed hospitality staff who have volunteered to work as chefs or drivers. We don’t make any money from it but it’s generated a lot of goodwill.”

The Hive Live has ambitious plans for the premises. The pub and café will become an all-round 7-day-a-week cultural venue, hosting performances, showing movies, holding workshops and developing community projects.

Damon said: “We can’t know how long it will take to get there. We are experienced at running outdoor events and we may have to do this at first. We have a vibrant music and arts community here and we aim to nurture it.”

Flexibility

Ian Rothwell, Investment Manager of Co-operative & Community Finance, has been in regular contact with both pubs. “The contrast between these two pubs shows the great flexibility of the community ownership model. It demonstrates that local people understand what their communities need better than pub management businesses.”

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Community buys shop just before deadline

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The residents of a small village in rural Northumberland are celebrating saving the only shop in the village, for the second time.

Slaley, located six miles from Hexham in the North Pennines, has an estimated population of 550. It also has the unusual distinction of having both a community-owned shop and a community-owned pub (the Rose and Crown), and both have been supported by loans from Co-operative & Community Finance.

The residents set up a community benefit society to run the village shop when the owners, who had run it for 50 years, retired in 2017. The owners offered to sell the property to the society for an agreed price so long as the purchase was completed within three years. The villagers just made the deadline.

David Allsop, Finance Director of Slaley Community Shop Ltd, said: “If we had not managed to raise the money and buy the freehold that would probably have been the end of the shop. It would have been sold, probably to a property developer. We are very grateful to Co-operative & Community Finance for helping us to save the shop.”

After exploring various grant options without success, the society launched a community share offer in May 2019. The share issue raised more than the minimum target but not as much as society needed so Co-operative & Community Finance provided a loan to make up the difference.

The society now has 170 members, many of whom are also members of the society that owns the Rose and Crown. The shop is run entirely by a team of nearly 60 volunteers.

The operation of the shop has been greatly affected by the coronavirus outbreak. Opening hours have been reduced because many of the volunteers are self-isolating. Despite this, turnover has increased as more people buy more food and groceries locally. “We have even had people from outside the community coming to try and buy all our toilet rolls,” said David Allsop. “But of course we would not allow that.”

David does not expect ownership to make a big difference to the operation of the shop. It will continue to be run by volunteers and the range of products stocked, which has been greatly extended over the last three years, is likely to remain the same.

There is a self-contained flat above the shop and the society receives the rent. One of the immediate improvements will be to install new and separate heating systems for the shop and flat.

Tim Coomer, Business Development Manager at Co-operative & Community Finance, said: ” At appraisal I was really impressed with Slaley Community Shop. Under their management over the past three years they have transformed the small retail space and built up a healthy business; securing an important asset for the village. With the current COVID 19 situation the shop is a lifeline to this isolated community and we are proud to support them and their activities at this challenging time.”

[picture: Shop volunteer Peter Stephenson (left) and society chairman Norman Watson pictured outside the shop in summer 2019.]

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SURVEY – Understanding a Maturing Community Shares Market

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The Community Shares Unit (CSU), along with a number of partners, is carrying out research to improve understanding of community shares. This is the first in-depth study of the community shares market since 2014. The Survey, ‘Understanding a Maturing Community Shares Market‘ is now live and the CSU are looking to hear from representatives from community enterprises and investors alike – all those who would like to comment are being asked to respond and share with networks of clients, colleagues, friends and family.

Your views are incredibly valuable to the research. With your help, the CSU will be able to:

  • Find out more about the effectiveness of share offers to date, both financially and in terms of their wider social impact and community benefit.
  • Explore challenges and opportunities for community share offers; including the added value that institutional investment like the Booster Programme can generate.
  • Help community shares projects to better understand investor motivations and behaviour.

Taking part is easy

  1. Complete the survey on behalf of your organisation online by Sunday 15th March 2020 – it takes between 10-15 minutes and is accessible here via a computer, laptop, tablet or smartphone.
  1. Invite community shares investors to take part too. Please help investors to have their say too by sending on the survey link and encouraging them to take part. If investors participate in the survey and refer to your organisation in their response, we will aggregate their data and share those findings with you. It is hoped that such information would be a helpful insight into the characteristics and motivations of shareholders and be helpful to the ongoing running of your organisation.

About the survey

The questionnaire is being administered by IFF Research, an independent research organisation, on behalf of CSU. All the information you provide will be held confidentially and used for research purposes only.

It will not be possible to identify any organisations, groups or individual respondents in published results. Under data protection law you will have the right to have a copy of your data, change your data, or withdraw from the research at any point. For more information, please see the IFF research website

If you experience any technical problems, or have any queries on the survey, please contact the IFF research team on 020 7250 3025 or email them If you would like to verify the authenticity of this survey, please email Isla McCulloch at the Community Share Unit

The survey is here and there is more information about the study here.

Outside-2019

New year, new kitchen, new supportive finance

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Significant building work to improve the facilities of a community-owned pub in rural Staffordshire is well underway, with support from Co-operative & Community Finance, Co-op Loan Fund, the Reach Fund and local grant providers.

The Royal Oak in Rushton Spencer, near Leek, which had closed after a period of neglect, was bought and re-opened by a community benefit society in 2015. The pub is run by a tenant and the rent generates a modest surplus for the society which is owned by nearly 160 local people who have bought shares. When they were first entitled to receive interest on their investment the members voted (at the AGM in 2018) that the money should be put towards improving the kitchen and toilet facilities.

Liz Austin, Secretary of Rushton Oak Community Pub Ltd, said: “For the last few years of commercial ownership the brewery had failed to invest in the building, and we were not going to make the same mistake. We were very aware that the kitchen facilities were inadequate and were limiting what the tenant could provide. Also, there was no wheelchair accessible toilet.”

The society decided to build an extension to provide an accessible toilet and increase the size of the kitchen. It spent much of last year developing a realistic plan to raise the finance needed.

Co-operative & Community Finance, which is an approved Access Point for the Reach Fund, helped the society to apply for a grant to cover the legal and professional fees. It also arranged loans from its own funds and Co-op Loan Fund. Both organisations had helped to fund the purchase in 2015.

Liz Austin said: “The builders started knocking down walls in the New Year and everything should be finished by the end of February. The new kitchen is going to allow us to greatly improve the quality and quantity of our food offer. Our tenant, Ollie Nock, is planning an exciting new menu with many vegan options.”

Tim Coomer, Business Development Manager at Co-operative & Community Finance, said: “I was very impressed by the passion of the board members and the tenant. They love their community pub and are determined that it will continue to succeed. By accessing the Reach Fund, Co-op Loan Fund and our own funds we have helped them finance a significant improvement in the pub facilities.”

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Old Ship to relaunch in 2020

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Co-operative & Community Finance is helping the enterprising community in the Rame Peninsular of south east Cornwall with the next stage of the rebuilding of a derelict former pub. Work is about to start on the building and equipping of a commercial kitchen at the back of the large site. The aim is for the ground floor to be fitted out in time for Easter 2020.

Locals and tourists enjoying the site in July 2019

In August 2018 the people of the picturesque village of Cawsand celebrated the bringing of a local eyesore into community ownership. The site of The Old Ship, which had burnt down in 2013, had been bought by a community benefit society with over 300 members, mostly local people. They had received advice and support from The Peninsular Trust, which has been responsible for a number of ambitious local ventures, and from the More Than A Pub programme. Co-operative & Community Finance arranged loan finance for the purchase. [Read more about the purchase in 2018 here.]

The community benefit society plans to make maximum use of the large site. The original bar area of The Old Ship will be recreated on the ground floor, where there will also be a café, children’s area, village information and heritage centre. On the upper floors there will be four flats to provide secure long-term accommodation at affordable rents to local people.

The society has been very busy over the last 18 months with applying for planning permission, with fund raising and with making the site safe for temporary use. Over the last two summers ‘pop-up’ events were run on the site. These included music, poetry, exhibitions and discussions, all serviced by a basic café. The photograph above shows one of the live music events in September 2019. The activities made a small surplus, but their primary aim was to get The Old Ship used and known. There is strong local support for re-opening The Old Ship and it is expected to be very busy during the tourist season.

Ian Rothwell, Investment Manager at Co-operative & Community Finance, said: “We are delighted to support the next stage in the development of this inspiring community venture. We are looking forward to seeing The Old Ship re-launch in 2020.”

chequer-inn-web

Seven Cooperative and Community Finance Borrowers on the Plunkett Shortlist!

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The shortlist is out and we send our congratulations to all 21 finalists in the Plunkett Foundation 2019 Rural Community Business Awards!

We are particularly pleased to see seven organisations that we’ve lent to in the past and who are still going strong!

We proud to have supported Community Shops Broadhempston Community Shop and Post Office; Lodsworth Larder; Our Shop, Hinton St George, and Ryburgh Village Shop

And we were glad to lend to the teams behind Community Pubs the Guilden Morden Community Pub; The Chequer Inn, and The Pheasant Community Pub at Neenton

Community Businesses like these are often a lifeline to the people they serve, providing a once again beating heart in communities who have lost amenities and services. We’re always glad to work with member-owned organisations supporting their communities and we wish all finalists – not just our seven! – the very best of luck for the awards ceremony on the 27th November.

ComShares

What are Community Shares?

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Have you heard of Community Shares? Interested – but not sure what they mean?

This fantastic video from Community Shares Scotland is a great way to understand what Community Shares are all about – as they say in it, ‘If your community believes in something then investing in Community Shares can make it happen’.

‘Community shares’ are withdrawable share capital; a form of share capital that can only be issued by co-operative societies, community benefit societies and charitable community benefit societies.

Share investments like these save local shops, pubs and facilities, finance renewable energy schemes, transform community facilities, support local food growing, fund new football clubs, restore heritage buildings, and above all, build stronger, more vibrant, and independent communities.

Since 2009, almost 120,000 people have invested over £100m to support 350 community businesses throughout the UK. If you’re thinking of a community business – could they be for you?

 

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Village pub gives housing plan the boot

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The people of a small village in rural Herefordshire are eagerly awaiting the re-opening of their pub after they saved it from redevelopment and secured its future by buying it for the local community. With the substantial renovation nearly finished [writing at 23 August 2019] and the tenants installed, The Boot Inn at Orleton near Ludlow is expected to start selling beer (locally brewed, of course) and serving food in the next few weeks.

“We are planning to re-open slowly and make sure we have got everything right before we hold a big celebration,” said John Alderman, the chair of the community benefit society that now owns the pub.

The Boot Inn is an attractive black-and-white timber-framed building that dates back to the 17th century when it was once three shops, including a cobblers (hence the name). The pub building is grade II listed and in the large garden there is a more ancient structure reputed to be the smallest dwelling in Herefordshire that was still occupied 50 years ago. The new community owners plan to make this into a mini museum.

The pub had once been the happy heart of the village but more recently had been neglected by the last owner who wanted to redevelop the whole site (over half an acre) for housing. It closed in June 2017.

The villagers frustrated the plans by having the pub declared an Asset of Community Value. After seeking advice from various organisations and other community-owned pubs, they set up a community benefit society to raise investment via a community share issue to buy and renovate The Boot Inn. The purchase was completed in January 2019.

The substantial renovation has included the roof, kitchen, bar, living accommodation, electrics, plumbing, and a new wheelchair accessible front entrance.

The tenants appointed to run the business are Chris and Hollie Thorpe, who both have extensive experience in catering and hospitality. Chris used to manage The Boot Inn when it was a successful venture and is well liked in the village.

John Alderman said: “We have saved our local pub and secured its future. In a small rural village like Orleton the pub can be a significant employer and can provide opportunities for young people. I’m pleased to say that Chris and Hollie are creating one full-time and 12 part-time jobs.”

Ian Rothwell, Investment Manager for Co-operative & Community Finance, said: “The purchase, renovation and reopening of The Boot Inn is a big project and we were happy to provide part of the finance needed in the form of a loan. I visited when the renovation work was just starting. It’s a lovely old pub, with outbuildings and a large garden. You could see it has plenty of potential. Also, it is very reassuring to know that it has been run successfully in the past by the very same person who is going to be the new tenant.”

The community share issue has so far raised over £325,000 from 283 investors. In addition, the community received advice. a grant and a loan under the More Than A Pub programme which was set up in 2016 to support community ownership of pubs in England. This programme is funded by the Ministry of Housing, Communities and Local Government and Power to Change, and is delivered by Plunkett Foundation working in partnership with Co-operative & Community Finance and Key Fund. The society also received a separate grant from The Pub is the Hub.

[The photo shows the first work party assembled at The Boot Inn on 3 February 2019]

punters

“Like two cheeks of the same backside”

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A community pub in Devon that has been run successfully by volunteers for eight years, was today (19 July) bought freehold by the local community. The Stoke Canon Inn, just five miles from Exeter, is now owned by a community benefit society with 140 members who have collectively invested £120,000. This investment, together with loans from Co-operative & Community Finance and Triodos Bank, has enabled the villagers to secure the future of their local pub.

The only pub in Stoke Canon (population of 660) closed in 2007 and was sold by the pub company to a property developer. The developer renovated and let the large three-bedroom flat on the first floor but left the pub area on the ground floor empty. After a few years without a pub, the community approached the owner with a proposal to lease the trading part of the premises. An agreement was reached, and a company limited by shares, called Stoke Canon Inn Limited, was set up in April 2011 to take on the lease and run the pub. The company is run as a co-operative with each of the 107 shareholders having an equal investment and just one vote.

For the last eight years the business has been run by a team of some 30 volunteers. There is one employee who is the manager, volunteer co-ordinator and designated premises supervisor. The operation of the kitchen is franchised to a self-employed chef, who has built a good reputation for traditional pub food, Sunday roasts and barbeques.

The pub offers a wide range of activities including darts, live music, bingo, quizzes and meetings of various clubs. It is the focal point for events such as the annual firework display and the Stoke Canon Festival. In October 2018, Stoke Canon Inn was included in the Guardian newspaper’s Top 50 Pubs in the UK

Last year the owner indicated that he wished to sell the premises. The local people, who feared losing their pub for a second time, sought advice from More Than A Pub and The Pub Is The Hub and set up a community benefit society to raise investment and buy the freehold. After a successful community share issue and sale negotiation the pub was bought by Stoke Canon Community Pub Ltd.

The new community benefit society owns the premises and the original company runs the pub as a tenant. The relationship between the two organisations is “like two cheeks of the same backside” said Maggy Clark, Chair of Stoke Canon Community Pub Ltd. “Many people have shares in both. It was less complicated to set up a new structure to attract the investment we needed for the purchase than to change the rules of the existing company.”

Because the community was already running the pub, the business of serving food and drinks has continued without interruption. However, the transfer of ownership will make a big difference to other things. The community benefit society will receive rent from the first floor flat, after it has been refurbished and let, and this will help to repay the loans. Maggy Clark says that several local trades persons have offered their services at very low rates or even free because they know that the building, car park and garden belongs to the village.

“We will continue to run the pub in the same way, with a paid manager and a team of volunteers. It works well, it makes people feel good and it holds the community together,” said Maggy Clark. “I’d recommend this to anyone like me who is retired. Otherwise we’d just be gardening.”

The community received advice. a grant and a loan under the More Than A Pub programme which was set up in 2016 to support community ownership of pubs in England. This programme, which has recently been renewed, is funded by the Ministry of Housing, Communities and Local Government and Power to Change, and is delivered by Plunkett Foundation. Co-operative & Community Finance arranges loan finance for groups that have successfully attracted local investment, usually in the form of community shares.

Ian Rothwell, Investment Manager for Co-operative & Community Finance, said: “Usually I don’t get to see the pub operational when carrying out an appraisal, but here I could see the pub in action, taste the food and meet the bar manager, chef, local activists and customers. The pub had a great feel to it and certainly the customers I met were really engaged and relished the opportunity to purchase it.”

Bar staff volunteers Pete, Maureen and Alison with manager Jodie (right), who is the only employee.

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