Investment information

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.

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.

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.

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 2025, we aim to continue to grow, with a pipeline of property purchases to help more people in need.

We use the proceeds of unsecured loan stock issued to buy properties (existing or new builds) to house the homeless. Green Pastures (GP CBS) may also lend funds to special-purpose subsidiary companies for property development purposes. We aim 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. We 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 our core business.

Green Pastures’ financial model is based on purchasing property for local Partners, who provide homes and support for the homeless. Green Pastures leases properties to Partners who run properties, receive rental income from tenants (who usually access Enhanced Housing Benefit payments) and Partners pay a lease to Green Pastures. As an indicative example, we would aim to see an annual rental income of a minimum of 9%* of the total outlay of each property (purchase price, legal fees and upgrades). Before purchasing a property, Green Pastures will check that rental income is available through Housing Benefit (or alternative sustainable funding) before proceeding with any property purchase. *Breakdown of the 9%: Capital & Investor Interest Payments 5%, Operational Costs 2.5%, Maintenance & Insurance 1%, Write-Offs 0.5%.

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.

Loan stock applicants must be at least 16 years of age (see point 1. of the Loan Stock Terms and Conditions).

Minimum: £1,000. No maximum investment. To date the largest single investor in Green Pastures has more than £400,000 invested.

The minimum term is 1 year. No maximum term. 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.

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.

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).

Quarterly, annually or rolled up at the end of the term. Payments are made by bank transfer.

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.

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.

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 2023, Green Pastures CBS Ltd, with its wholly-owned subsidiaries, had net assets of £12.9m. This means that, in theory, if CBS were wound up and all its debts paid, there would be £12.9m left over before liquidation costs.

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.

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.

Yes.

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.

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.

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.

The item is on the FCA's mutuals register and a record can be found here.

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.

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.

Green Pastures CBS Limited audited accounts are available here: 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24. Green Pastures CBS Limited is regulated by the Financial Conduct Authority. You can find Green Pastures CBS Ltd on the FCA search website mutuals.fca.org.uk.

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. ‍

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.

Yes. Money has been invested in GP in the name of a family trust.

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.

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.

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.

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,

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.