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The Angel Spinkhill Community Interest Company Update: 15 May 2014 This update is for all who would like to support the re-opening of The Angel Hotel, Spinkhill either through your personal association with the pub or because you have a passion for projects that promote community benefit.
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The Angel Spinkhill Community Interest Company Update: 15 May 2014 This update is for all who would like to support the re-opening of The Angel Hotel, Spinkhill either through your personal association with the pub or because you have a passion for projects that promote community benefit. We need you support now, Thank you for considering our community project.
Agenda Background The Angel Spinkhill Community Interest Company Feasibility Study Investment opportunity
Background • Story of… • Decline • Closure • Asset of Community Value(moratorium: 18th June 2014) • Planning • Opportunity
The Angel Spinkhill Community Interest Company A subset of the group that was actively involved in challenging the planning application (Save The Angel Group) Chris Emmott Headteacher & Spinkhill resident Jenny Elsley Detective Constable & Spinkhill resident DezLawrence Engineer & Spinkhill resident FrPeter McGuire Parish Priest & Spinkhill resident Andrew TrubyHeadteacher & Spinkhill resident We’re not experts - just passionate about the project and our community.
Strategy • Seek financial support to assist with a detailed feasibility study • Initiate a dialogue with Punch Taverns (agents Fleurets) • Develop a business model for the future of The Angel • Explore funding streams • All with the intention of making a community bid to acquire The Angel and reopen it for business.
Pre-Feasibility Grant Received £8900 grant from the Community Assets and Services Grant Programme which is managed by the SIB (Social Investment Business)
Works undertaken • Valuation (Brownill Vickers) • Acquisition Survey (Tattersall) • Viability Report (Sidney Phillips) • Asbestos Refurbishment Survey • Electrical Survey • Gas and Heating Survey • Concept design drawings • Legal (Nabarro, Sheffield) • Financial advice (PricewaterhouseCoopers)
Clear Objectives • Business model supported by a detailed Business Plan • Bid Strategy • Funding Strategy
Business Model A community owned building that delivers: Basement Function/community room (integral to the restaurant/pub) Ground Floor A destination eatery and pub 1st Floor Three apartments (1x2bed + 2x1bed)
Concept Drawing 1 : Basement Concept Drawing 3 : 1st Floor
The Bid Based upon our feasibility study and Business Plan Target 1 to agree a purchase price (at or around £150,000 + associated fees) £180k Target 2 raise the capital forrefurbishment (180k + associate fees) £200k
Negotiations • Protracted discussion with Fleurets • (agents for Punch Taverns) which focused upon • Price • Head of Terms (or conditions attached to the sale) • A bid was finally agreed subject to contract...
Price Agreed Subject to contract with an agreed Heads of Terms £147,500 with a deadline of the 30th June 2014 to raise the capital and exchange contracts for the sale and purchase.
Funding Strategy Purchase the building using a community share purchase vehicle. 2. Refurbishment: residual community shares bank loans (specialist sector) community grants private individual loans
Community Share Offer Launched during the week commencing 26th May 2014 Available to download Business Plan & Share Offer Package (Hard copies available on request) Package will include the rules governing the share issue.
Structure of CBS Shares Convert to a Community Benefit Society (CBS) A social enterprise motivated by its social objectives and social purpose. Designed to attract investment from the local and wider community and those who have an association or interest in our vision. Unlike other types of business, the objectives of a CBS is not to maximise profits/financial gains for shareholders. Any return on capital invested by shareholders is better understood as compensation rather than a reward for risk taking. Because you are investing for social return as opposed to financial gain, the sale of shares in a CBS are not regulated by the FCA (Financial Conduct Authority). Investors become members of the CBS by purchasing shares.
Investing in a CBS Individuals, organisations and companies can apply The shares available to purchase are called withdrawable shares Shares cost £1 each (minimum shareholding of £100 and maximum shareholding of £100k) per person or organisation Each member is limited to ONE vote at any general meeting regardless of the number of shares held
How do I recover my investment? • Shares cannot be sold but can be withdrawn • (subject to conditions) • Conditions (currently being finalised by our lawyers) are typically: • Minimum holding period (normally 5 years) • Notice period • Surplus funds available
Does my investment earn? • Yes! Both in terms of the community benefit and financially. • Shares can earn interest (tbc in the offer document) • Interest is not usually paid out on an annual basis • Interest is normally credited to members’ share capital accounts and paid out on withdrawal (target 2% above base rate) • This is designed to assist cashflow and reduce admin. costs
Additional Information Profits generated by a CBS are primarily intended to be used to benefit the community. Liability of a shareholder is limited to the amount they invest. Shares can go down in value but cannot increase above their original value.
If we fail to meet our target? • The acquisition of The Angel will not proceed unless sufficient funds are raised to secure • Target 1 (the purchase of the building at £180k) • Should we fail to meet that figure, then the entirety of the monies you invested would be returned without deduction.
Your community needs you! Summary We have a community need We have a vision and a strong business plan We have an opportunity Can we raise the capital and make history together? To be part of that history, please visit our website.
