Investment in Social Real Estate provides significant societal value and compelling investment opportunity, says TIME Investments
New figures from TIME Investments, which specialises in asset-backed and income producing investments across infrastructure, real estate, renewable energy and lending, shows that Social Real Estate (SRE) investments, which comprise physical assets that accommodate or facilitate social activities or services, can deliver a significant multiple in societal value for every GBP1 invested.
TIME estimates that the SRE investment opportunity totals more than GBP50 billion in the UK because private capital is needed to support the delivery of SRE assets that cannot be met by over-stretched public finances and is significantly undersupplied.
For example, at least GBP8 billion is needed to meet the 45,000 units shortfall in specialised supported housing3,GBP6 billion to replace smaller care homes, GBP17 billion to replace existing GP practices considered unfit for purpose, while solutions for homelessness and day nursery shortfalls could each require more than GBP10 billion.
Roger Skeldon, Fund Manager of TIME:Social Long Income, says: “A growing and ageing population in the UK means demand for SRE assets and the services they provide will rise significantly over the next ten years. The UK population is forecast to increase by c3 million and reach c70 million over the next decade placing further demand on assets and services that are already stretched. Additional high quality facilities are needed across the whole social real estate spectrum presenting a compelling investment opportunity, which TIME:Social Long Income seeks to take advantage of.
“With the ongoing Covid-19 pandemic, there remains significant uncertainty which is affecting the economic recovery but given the investment strategy and nature of the assets within TIME:Social Long Income, it is well placed to continue to deliver positive performance. Investors can enjoy the benefits of consistent income – something that is hard to come by in the current economic climate – and the knowledge that they are having a positive impact on society.”