Social Business Bucks the Commercial Property Trend

Social Business Bucks the Commercial Property Trend

Against the back drop of the worst downturn in the commercial property sector since the 1990 crash, a leading social enterprise is doubling its serviced office space in central London and has ambitions to take over more empty commercial properties hit by the economic downturn.  

As the UK marks Social Enterprise Day (Thursday November 20^th) CAN Mezzanine, the award-winning social enterprise that provides high quality affordable office space for charities, social enterprises and voluntary organisations has financed and purchase the freehold interest in an Old St site of 36,000 sq ft. It has raised the £10.5m, largely from sector banks, to purchase and develop the site through to occupancy.

The new CAN Mezzanine site, its largest yet, will provide space for another 80 organisations, bringing the total housed by the social enterprise to over 200. The building will be completely refurbished with conference and meeting room facilities and open for business in Spring 2009.

"That CAN Mezzanine has such a solid social business model which allows us to push through this transaction in the worst financial climate not only makes us very proud, but signifies the power and potential of growing social enterprises," says Andrew Croft, Chief Executive of CAN, the charity behind CAN Mezzanine. "Our model is an attractive proposition for investment because as a charity-based social enterprise, we don't maximise shareholder profit but reinvest our surpluses to create more public benefit."

Ethical finance institution Triodos Bank has provided the main financing with Charity Bank, the UK's only regulated bank which is also a registered general charity, securing the mezzanine funding. Croft says that CAN Mezzanine is delighted to have been able to work with ‘third sector' banks.

"The banks we are working with have acted prudently and therefore are in a strong position to work with ambitious social enterprises like CAN Mezzanine,"
he says.

Sue Cooper, Deputy Head of Business Banking at Triodos Bank says: "CAN Mezzanine is an inspiring example of how charities and social enterprise can continue to make the most of the opportunities available, despite the current economic climate, with the financial support of social banking specialists like Triodos Bank and the Charity Bank. Given all we've heard about banking over the last few weeks, we're delighted to be part of some good news from the sector."

Charity Bank Chief Executive Malcolm Hayday welcomed the expansion of CAN Mezzanine, saying: "We're happy to provide, together with Triodos Bank, a third sector solution to the financial needs of CAN Mezzanine and its clients.  As a tenant of CAN Mezzanine, we have experienced for ourselves the efficiency of the team and the benefits of sharing resources with like-minded organisations.  By creating a hothouse of ideas under one roof, CAN Mezzanine is providing an environment in which social enterprises, both as individual organisations, and as a sector, can thrive."

CAN Mezzanine has already seen an increase in enquiries as organisations look to reduce their overheads and look for added value in the current climate. Security of tenure and quality accommodation remain critical growth barriers for charities and social enterprises. CAN Mezzanine provides space per desk on a one-year licence with a three-month break clause, allowing organisations to increase or reduce their space according to need. The space also provides meeting and conference facilities, serviced kitchens and reception services to its customers.

On social enterprise day 2007, then Minister for Third Sector, Phil Hope, announced CAN Mezzanine's results of its independent Social Return on Investment analysis. It reported that during 2007, its London Bridge site alone saved the sector £2.2m in accommodation and services.

Kevin Brennan MP, Minister for the Third Sector adds: "It is very good news to hear that CAN Mezzanine is launching another building. As a social enterprise themselves, they have found a perfect way to support the sector by providing centrally located, affordable office space. CAN Mezzanine is an innovative organisation and at the heart of what social enterprises and Britain's thriving third sector are all about. I am committed to supporting organisations like this and developing and empowering these types of initiatives."

CAN Mezzanine plans to roll out its model across the UK owning, leasing and managing space on behalf of partners.

For more information on the new site or to register your interest in space, please visit http://www.can-online.org.uk/mezz_customer_enquiry_form.php

You can also contact Kirstin Ross on k.ross@can-online.org.uk

Or Pete Murray on p.murray@can-online.org.uk

For interviews and further media information please contact Reena Chadha on r.chadha@can-online.org.uk or 020 7922 7759

ENDS