Dolphin Square Foundation
1st Floor
11 Belgrave Road
London SW1V 1RB
Tel +44 207 931 6460
Fax +44 207 931 6461
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Investment Partners

As it embarks on its property development activities, so it will create investment opportunities for partners to join either as it begins developments or when it comes to refinance, then such refinancing will occur as developments reach maturity and begin to deliver a steady return. DSF is fortunate that its charitable object of delivering public benefit is underpinned by its low cost of capital.

Its endowment, now some £100m, enables it to invest its funds at the low returns, which are needed, if it is to meet the relatively high cost, due to land values of delivering affordable homes in the City of Westminster. On occasions that return will be too low and it will need to enhance it by investing in private sale/ rental property, thereby increasing its blended yield to an acceptable level. In working with investment partners, DSF would expect to deliver a return to them, which may well exceed the return it seeks and compare favorably with the returns which such investors might achieve elsewhere.

An additional benefit of investment in the affordable housing area is that rents are generally indecent, typically at RPI plus ∏% to plus 1%. Such a return would allow longer term investors, such as pension funds to match certain of their liabilities. Lastly, DSF is currently working with a number of partners to develop a wider investment opportunity in the affordable intermediate market. It welcomes discussion and dialogue with those interested in pursuing the debate about the need for acceptable investment opportunities in housing, now being promoted by the Homes and Communities Agency as well as interest from those interested in investing with it in suitable opportunities.

A further element in its funding strategy will be borrowed funds. In the current climate this is difficult. Now, as the economy recovers and the banking market returns to its new normality and in appropriate cases, where the returns are such to make the cost of borrowing a worth while expense, DSF will seek loan funding for discrete opportunities. It intends to create strong relationships with a limited number of banks, whose appetite matches the needs which DSF generates.