Cheyne Capital has committed further capital to charitable group Thera Trust from its recently-launched second impact real estate fund, Cheyne Impact Real Estate Trust.
Its investment will enable the purchase of houses and bungalows across the UK, bringing the number of people housed by the partnership to 180.
It follows previous investments in 2015 and 2018 by Cheyne in Thera, a group of charitable companies providing support for people with a learning disabilities.
An audit report of the investment by the Policy Institute of King’s College London has found that the investment programme is having a “real impact on individual lives”.
The properties that Cheyne purchases for Thera’s housing subsidiary, Forward Housing, are intended as ‘homes for life’ and offer tenants a choice in their accommodation, security of tenure and the opportunity to remain part of their local communities.
Staff, families, local council commissioners and Forward Housing are all involved in ensuring tenants’ homes are best suited to their specific needs.
The report by King’s College London says: “The pandemic crisis emphasises the importance of good housing, as people are forced to spend much more time in their homes. It also demonstrates the fragility of systems intended to meet the needs of vulnerable groups such as adults with learning disabilities, as local authorities’ social care obligations have been pared back. These unique circumstances underscore the value of innovative models of financing and provision, such as that provided by the fund.”
The report adds that Cheyne-Thera model “demonstrates that it is possible to provide high quality housing that meets the needs of people with learning disabilities, within current funding constraints”, adding: “The homes that the fund has supplied as well as the associated care arrangement have been the backbone of significant changes in the lives of these residents. Improvements have been observed in their health, happiness and wellbeing, their independence and their relationships with others. These changes have also had a profound effect on the lives of family members, who are satisfied that their relative is living in a safe, suitable and comfortable environment.”
Stuart Fiertz, co-founder and president of Cheyne Capital, said: “Over the past few years we have witnessed first-hand what a profound impact Thera’s housing can have on the lives of its tenants.
“The pandemic has highlighted the fragility of the ecosystem and the vulnerability of adults with a learning disability, so we are proud to continue working with Thera to provide innovative models of financing and housing which can make such a difference and give tenants greater security and independence.”
Ravi Stickney, managing partner and CIO of real estate at Cheyne Capital, said: “In addition, this partnership has proven its investment thesis. Our investment with Thera quickly provided a financial return to our investors – demonstrating that you truly can balance financial returns with social impact.
“This is a prime example of the results that can be achieved when charitable or social sector institutions and private capital work together to provide solutions for those that need them most.”