Case study

Merseyside Assured Homes

Raising construction finance for the building of new social housing in Liverpool

In 2018 Abundance branched out into a whole new sector when we helped pioneering housing developer Octevo to finance the construction of 30 new social homes in and around Liverpool. More than 1,500 investors funded the £4.25 million project, and construction started in October of the same year.

Octevo has designed a model that sees new social homes constructed by private developers and regular investors, with safeguards in place to ensure the homes deliver a long term social benefit. For Merseyside Assured Homes this means that the homes are leased to a registered social landlord, whose responsibility it is to find tenants and maintain the properties. After 50 years the registered social landlord may buy the properties from Octevo for the nominal sum of £1.

The win win is that people and families on local waiting lists will receive a warm and energy efficient home that is also affordable, because any rises in rent are capped by government regulation. Meanwhile, the homes are guaranteed as social housing for at least 50 years, and investors can earn a modest return from a property investment that has real social value.

As this was a whole new sector, our marketing and PR teams produced a content stream before and during the investment raise. This had the effect of educating our investors about the new sector and this project, as well as about the issues in housing and why Abundance as a brand feels it is important to tackle. Meanwhile, our PR strategy landed a dedicated article by Aditya Chakrabortty in The Guardian, which raised the profile of Octevo, their project, and Abundance.

  • £4.2m
    Total invested
  • 1,500
    Number of investors
  • 3yrs
    Investment term (years)

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Corporate Clients should consider all risks before raising capital through Abundance and take independent advice where necessary. As with any investment product there are risks. For any financing raised, part or all of the investors invested capital may be at risk and any return on their investment depends on the success of the project invested in. Abundance investments may not be readily realisable (and their value can rise or fall). Financing may be secured or unsecured. Estimated rates of return can be variable and estimates are no guarantee of actual return. Specific risks will apply in relation to each financing product.