We are a national Christian social enterprise that provides homes for the homeless and those in most need. In partnership with 90+ like-minded organisations, Green Pastures today houses over 1,500 homeless and vulnerable people.
These ‘Partners’ are organisations that have approached Green Pastures with a desire to house homeless people in their area. Each partner agrees to house and care for the homeless in their locality in properties identified by the partner and purchased by Green Pastures.
Partners provide pastoral support to their residents, administer the project and maintain the property. Green Pastures provide all the necessary paperwork and on-going support.
Green Pastures is a Community Benefit Society (CBS), which is an Exempt Charity registered with the Financial Conduct Authority (FCA). The rules governing Green Pastures CBS Ltd can be found here.
Our work housing the homeless is uniquely funded by investors who lend to us for a minimum period of one year. The formality of this arrangement is that we issue loan stock to investors in recognition of their loan. We use investors' money to purchase and build property, often in conjunction with other sources of finance. Repayment is made from cash held on deposit within GP CBS obtained through alternative borrowing and further issues of loan stock. Investors select an interest rate in the range of 0% - 4% p.a. for investments of under 2 years, or in the range of 0% - 5% p.a. for terms of 2 years and over. By selecting less than the maximum interest, Green Pastures can assist more homeless people. GP CBS does not attract stamp duty, allowing more homeless people to be housed due to cost savings.
Green Pastures was chosen as the winner of the 2011 Inspire Award in the Organisation category. Since then, articles have been written about Green Pastures in The Times, Big Issue North West, Wigan Observer, Southport Visiter, Sorted Magazine, Idea, Shelter’s magazine and many others. Green Pastures has featured on Songs of Praise, BBC’s Inside Out, UCB, Revelation TV, Premier Radio and other national radio and TV stations.
Green Pastures also assists its Partners to set up social enterprises to employ their residents. Due to generous investors who have selected a lower interest rate, we offer small grants to support Partners that are setting up new social enterprises.
Environmental design is becoming a feature of our consideration and Green Pastures considers energy efficiency upgrades when purchasing and building property.
The material provided on this page is for informational purposes only, is intended for your use only, and does not constitute an invitation or offer to subscribe for or purchase loan stock. The information provided is not intended to provide a sufficient basis on which to make an investment decision. Any investment should be made pursuant to the Investment Application Form. The information provided in this material will be subject to, and expressly qualified by, any information contained in the Investor Application Form. Information and opinions presented in this material are subject to change without notice. Green Pastures CBS Ltd. accepts no liability for any loss arising from the use of this material. Past performance is not necessarily a guide to future performance and an investor may not get back the amount originally invested. Nor are the results referred to in this document a guide to future performance. Loan stock may not be suitable for all investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources and it should be noted that investment involves risk. Any views expressed in this presentation are current as at 01 April 2023 and are for informational purposes only. They do not constitute a recommendation to buy, sell or hold any loan stock and should not be construed as investment advice.
Investor Protection Notice >
GP CBS is an Industrial and Provident Society registered at the FCA with number IP31116R. The record may be found by searching the Mutuals Register at the FCA and entering 31116R in the company number search box. The rules of GP CBS can befound at greenpastures.co.uk/rules. The information provided in this loan stock application requires your detailed attention. You should read the rest of this Notice before proceeding further. If you require advice you should consult a bank manager, solicitor, accountant, stockbroker or independent financial adviser authorised under the Financial Services and Markets Act 2000 (FSMA 2000). This communication is not intended to be distributed or passed on directly or indirectly to any other person. It is supplied to you at your request and for your information only. The Green Pastures website and any communication issued by GP CBS are intended for the use of UK residents only; overseas residents may be barred by local legislation from subscribing for investments such as unsecured loan stock issued in the UK. GP CBS is not an authorised body under FSMA 2000 but is registeredwith the FCA. GP CBS does not accept deposits. Unsecured loan stock is not covered by the Financial Services Compensation Scheme. GP CBS is not a member of an Investor Protection Scheme. Unsecured loan stockholders are not deemed to be members of GP CBS. Unsecured loan stockholders are not entitled to receive notice of or to attend and vote at any meeting of the members of GP CBS. Industrial and Provident Societies are exempt from the FSMA 2000 financial promotion restriction in respect of unsecured loan stock. Pursuant to Article 35 of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 the financial promotion restriction does not apply to loan stockissued by GP CBS as set out in paragraph 15 of Schedule 1 to the Order. GP CBS has taken all reasonable care to ensure that every statement of fact or opinion included in this information is true and not misleading.
Risk warning >
Green Pastures has been purchasing property to house the homeless since 1999. On 26 January 2011 GP CBS acquired its first property and thus commenced its business of buying properties to house the homeless. Peter Cunningham, Ann Victoria Woodley and Andrew Mark Cunningham subscribed for 1,000 ordinary shares of £1 each. Annual audited accounts are available. If you have any doubt about the action you should take or the suitability for you of applying to GP CBS for unsecured loan stock you should contact your independent financial adviser (authorised under FSMA 2000) or another appropriately qualified adviser. Your holding of unsecured loan stock should be seen as a social investment. Applying for unsecured loan stock in GP CBS is not suitable for anyone who is reliant upon income from investments or immediate access to their capital. There is always a risk that you could lose some, or all, of your unsecured loan stock. GP CBS is registered with The Financial Conduct Authority who may be contacted online at fca.gov.uk.
1. What is ‘loan stock’?
When investing in Green Pastures, Investors buy unsecured ‘loan stock’ - which is in effect a receipt acknowledging your loan. Loan stock earns interest at the rate that you choose, and is repayable to you at the date you choose when you invest.
2. What does ‘unsecured’ mean?
GP CBS offers unsecured loan stock, which means that your investment is not secured by a specific asset, such as property, to guarantee that the investment will be repaid.
3. What does ‘ethical investing’ mean?
Ethical investing, also known as socially responsible investing or sustainable investing, is the practice of investing in companies that are considered to have a positive impact on society and the environment, while avoiding companies that are seen as having a negative impact. This type of investing takes into account not only financial returns, but also the social and environmental impact of the companies in which an investor is considering investing.
4. What is the social impact of my investment?
Unlike putting your money into a bank or other standard investment, Green Pastures exists to house and support the homeless, and so your investment is put to good work making our work possible. Investors in Green Pastures are vital to our overall funding, and enable our work to continue and grow. Without investors purchasing loan stock, we are unable to grow to house more people or maintain our existing portfolio of properties. We currently house around 1500 people, and in the financial year ending 31st March 2024, we're aiming to grow to house 300 more people in need.
5. How does Green Pastures use invested funds?
GP CBS aims to use the proceeds of unsecured loan stock issued to buy properties (existing or new builds) to house the homeless. GP CBS may also lend funds to special purpose subsidiary companies for property development purposes. GP CBS aims to hold up to 20% of capital raised from loan stock in liquid assets in the form of cash deposits or secured loans to third parties repayable within six months or otherwise available by way of an overdraft facility. The purpose of liquidity is to provide flexibility in cash management, in particular, to enable the company to move quickly as opportunities arise, and to meet loan stock repayments when due. GP CBS may also use funds to invest in income-generating commercial properties, arm’s length residential properties or equity investments to generate income. Such income sustains expansion activities and builds our capital base, necessary as the balance sheet grows. Property investments also have an insurance element in that they can be sold without disrupting GP CBS’s core business.
6. How can Green Pastures pay up to 5% interest?
Green Pastures’ financial model is based on purchasing property for Partners, who provide homes and support for the homeless. We ensure an annual rental income of a minimum of 9%* of the total outlay of each property (purchase price, legal fees and upgrades) at 85% occupancy. Before purchasing a property, Green Pastures will check that rental income is available through Housing Benefit (or alternative sustainable funding) before proceeding to purchase a property
*Breakdown of the 9%:
Capital & Investor Interest Payments 5%
Operational Costs 2.5%
Maintenance & Insurance 1%
Green Pastures has operated under this model since 2007 and it has been sufficiently robust to enable significant growth in this work housing those in need through the economic downturns & Housing Benefit cuts.
7. What is a ‘Community Benefit Society’?
Green Pastures is a Community Benefit Society (CBS), which is an incorporated Industrial and Provident Society (IPS) that conducts business for the benefit of its community. Profits are not distributed among members, or external shareholders, but returned to the community. The purpose of a community benefit society is to serve the broader interests of the community, in contrast to co-operative societies that serve the interests of members. The FCA states that “the conduct of a community benefit society’s business must be entirely for the benefit of the community.” There can be no alternative or secondary purposes, including any that may preferentially benefit the members.
8. What is the minimum investment age?
Loan stock applicants must be at least 16 years of age (see point 1. of the Loan Stock Terms and Conditions).
9. What is the minimum and maximum investment?
Minimum: £1,000. No maximum investment. To date the largest single investor in Green Pastures has more than £400,000 invested.
10. What is the minimum and maximum term?
The minimum term is 1 year and the maximum term is 30 years. The longer you invest your money with us, the better it is for our financial planning and our ability to get funds from other sources.
11. What interest rate can I choose and is the interest rate fixed?
You can select anything between 0 and 5% if the term is for 2 years or more, or between 0% and 4% for less than two years. Any interest that you forgo will help us to house more vulnerable and homeless people.
The interest rate is fixed for the length of the term. Choosing a lower interest rate allows us to provide homes and support for more people. See our loan calculator for how many people your investment will help.
12. Which country do I need to live in to invest?
In principle you can be a resident anywhere in the world to invest in Green Pastures Loan Stock. If you are not resident in the UK, you will need first to check your local investment regulations as to whether you are allowed to invest overseas, particularly in unlisted securities. Investments from outside the UK need to be received in sterling (GBP).
13. How does Green Pastures pay me my interest?
Quarterly, annually or rolled up at the end of the term. Payments are made by bank transfer.
14. What does “rolled up” mean?
Interest that is not paid at the end of the applicable interest period, but which is, instead, added to the outstanding principal amount of the loan (hence the phrase "rolled up"). Interest will then accrue for the following period on the total amount of outstanding principal and interest rolled-up net of tax. See also TAX FAQs below.
15. When can I get my money back? What if I want my money back early?
Investments are redeemed at the end of the term. In exceptional circumstances Green Pastures may, at its discretion, accept applications for early repayment (See Investment T&C 6). Regulation requires that early repayment criteria are strictly applied. Loan Stock does become repayable on the death of a holder except in the case of joint holders. No investors receive preferential treatment. GP CBS has the right to suspend redemptions. Investors can renew at the end of the term.
16. How secure will my investment be?
Your investment is unsecured, which means you do not have a charge, or first call, on any of CBS's specified assets. Based on audited figures for the year ended 31st March 2020, Green Pastures CBS Ltd, with it's wholly-owned subsidiaries, had net assets of £5.4m. This means that, in theory, if CBS were wound up and all its debts paid, there would be £5.4m left over before liquidation costs.
17. What happens when my investment matures?
Sometime before your investment is due to mature you will receive an enquiry asking whether you wish your loan to be repaid or reinvested. If you choose to reinvest your funds, a simple form will be sent to renew the subscription. If you choose to withdraw the money, you will need to give us instructions as to where and how to remit the funds. We may need to verify the authenticity of such instructions.
18. How do changes in the benefits system affect Green Pastures’ model?
Our partners provide supported accommodation to their residents. Housing Benefit pays for most or all of the rent of a homeless applicant. Where the landlord provides supported accommodation, Housing Benefit can be classed as ‘Exempt Accommodation Allowance’ (EA). EA is defined as accommodation provided by a non-metropolitan county council in England, a housing association, a registered charity or voluntary organisation where that body or a person acting on its behalf also provides the claimant with care, support or supervision. When providing EA, the landlord can claim for other costs related to the bricks and mortar of the building but not the support. EA is exempt from Universal Credit. No changes have been implemented to date by the government with respect to reforming EA although changes are expected.
20. Is the interest paid net of tax?
Interest is paid net of basic rate income tax and is taxable as income. PLEASE NOTE: If you take rolled up interest, that interest will all be taxed in the year in which it is received by you, which might take you into a higher rate tax band. If you are entitled not to pay tax on your interest, you can claim back the tax through the completion of your HMRC self-assessment form. If you are not required by HMRC to complete a self-assessment form, you can reclaim the tax through completing a Form R40. This form is designed for the repayment of tax deducted from savings and investments. If you are a tax-exempt charity, registered as such with HMRC, your interest will be paid gross of tax.
21. Is any of the interest I receive tax free?
Dependent upon the tax bracket that you are in, there are varying amounts of interest that you are able to receive free of tax. For full details visit the gov.uk website.
22. If my tax status changes during the loan term can this be accommodated within the loan term?
All loan stock investments are taxed at source currently at 20%. If at any point, whether at commencement or during the term, you have to pay more or less than 20% tax due to your earnings you will need to reconcile this in your annual self-assessment or through PAYE.
23. Where can I find CBS on the FCA’s register, where is the record of your registration?
The item is on the FCA's mutuals register and a record can be found here.
24. Would my loan stock be covered by the Financial Services Compensation Scheme (FSCS)?
No. This is a scheme for banks. CBS is not a bank and we are not able to be a part of the FSCS. The security of our loan stock comes from our equity/borrowing ratio and our financial model. Further information is available in our Annual Report and Accounts via the contact us page.
25. Is Green Pastures a bank?
No. Green Pastures is a CBS under the Industrial and Provident Society Act (IPS). CBS is a vehicle that enables us to claim charity status whilst raising funds through issuing Loan Stock. We are governed by our Rules and registered with the Financial Conduct Authority.
26. Where can I view Green Pastures’ accounts?
27. What happens if the investor dies? Is loan stock immediately repayable to their representatives?
A family member, solicitor or other executor needs to inform GP of the death submitting a copy of the death certificate. The term of the loan to GP ends on the date that is on the death certificate and no interest accrues after the date of death. Once the executor has obtained probate, they can issue instructions to GP as to where to remit the amount of the loan and interest accrued to the date of death. Payment will follow shortly thereafter. No-one, including solicitors, can normally be an executor unless they have Probate or Letters of Administration appointing them although there can be exceptions.
28. Can I invest money for my grandchildren? Or under 16s?
You will need to create a ‘Bare Trust’ (a legal document irrevocably passing the assets to your child). The investment is held by trustees on behalf of the child. The investment doesn't form part of your estate for inheritance tax purposes. You must administer the trust for the sole benefit of the child. We recommend you take advice from your accountant or other professional adviser to check such a letter.
The investor sends us a letter alongside their applications for loan stock stating that they are the nominee for the child. On the Loan Certificates it should say "[investor name] – trustee for [child’s name]". We would advise your accountant to look over this letter, not least because trusts carry tax consequences.
29. Can a Trust invest in Green Pastures?
Yes. Money has been invested in GP in the name of a family trust.
30. How much do repairs on properties cost?
General maintenance costs of 0.75% of capital outlay have been successfully budgeted each year. Cyclical repairs of 0.8% are serviced via RPI-linked lease increases.
31. What does Green Pastures do with my investment?
All investments are utilised to release the church, in its widest sense, to eradicate homelessness. In addition to loan stock, we borrow up to 60% again from banks on a secured basis, thereby giving us more capacity. All of our funds, by necessity, are pooled and our policy for utilisation, which needs to be flexible, is:
- Approximately 10% is retained in liquid assets to enable us to meet loan stock repayments, to take buying opportunities and to manage any unforeseen circumstances;
- Up to approximately 20% is utilised in new build or redevelopment projects. These provide modern, energy-efficient homes either for the homeless or for sale on the open market to generate surpluses to help build our capital base and buy more property. This is important to provide reserves that keep pace with our increasing borrowing and to provide free funds for investment;
- The remainder goes directly into buying property to provide homes and support for the homeless and those in most need. We also have a small portfolio of investment properties which are let on the open market and available for sale to raise cash if a squeeze were to occur.
These percentages are approximate and can vary considerably depending on cash flows and opportunities that arise. We utilise loan stock before borrowing from banks.
32. How much money is going towards administrative expenses including executive pay, marketing etc.?
Administrative expenses, executive pay and marketing are covered by rental and investment income, supplemented from time to time by development profits. We have adopted a deliberate policy of investing in a Partnership Management team to build the business, a process which inevitably takes time to be cost effective. Executive Directors' remuneration is disclosed in the Notes to our Annual Report and Accounts.
33. Can I invest under a Power of Attorney and if so, what Anti-Money Laundering Evidence is needed to be supplied?
Yes, it is possible to invest under a power of attorney. We would need sight of the original attorney document or a certified copy signed by a solicitor. We would need ID evidence from the Attorney holder and one item of ID showing the name and address of the investor. If necessary, this could be a letter from a care home confirming occupancy,
34. We would like to invest as a charity or business, how do we complete the application form?
Please enter the name of your organisation in the first box “Company/ Organisation name" and enter the registered number in the box below.
In the signature boxes at the bottom of page 1, please enter the names of two directors or trustees; their dates of birth; and their capacities in which signing. In the case of a church, the treasurer and senior minister should be the signatories.
Please comply with the identification requests under the heading “Investments over £5,000” and "Investments over £100,000" as appropriate in respect of either one signatory.