ethical share issue is a hitMarch 2003
The largest-ever UK public share issue by a social enterprise has reached its full subscription of £4.2million ($6.7m).
The Ethical Property Company will use the funds, together with bank borrowing of £5.8m, to buy properties around the country and let them out at ‘reasonable’ rents to charities and social enterprises. It also offers ‘sympathetic management’ to its tenants.
The unlisted company, which already owns and manages eight properties, will have an asset base worth around £13m once all funds are invested. It is now looking for new locations in a number of cities, including Manchester and Brighton.
Commercial manager James Vaccaro claimed the success of the share issue in poor economic conditions was ‘evidence of a growing appetite for genuinely ethical investments that offer the prospect of a real financial and social return’.
The UK-based fairtrade company, Traidcraft, which is also unlisted, raised £3.25m through a successful public share issue in January.
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