Innovative partnership delivers bright future for Cambridge organisations
Photo: Courtesy of Keith Heppell, Cambridge Independent.
Two Cambridge organisations today announce a ground-breaking new investment partnership which will ultimately support more people in buying their own home in the region.
The Cambridgeshire County Council Pension Fund is investing £15m in The Cambridge Building Society to provide a trusted and secure place for its members’ investments whilst supporting the local Society’s ambitious growth plans.
Through the issuance of Core Capital Deferred Shares, The Cambridge Building Society will receive an injection of capital that will support further growth of the business, lending more to local borrowers and investment in products and services for existing members. In 2016 the Society achieved record lending of £265m and in real terms this investment will provide support to 1,000 more families in buying homes over the next two years. This partnership is the first of its kind between a building society and local authority in the UK.
Stephen Mitcham, Chief Executive of The Cambridge said: “This partnership marks the start of an exciting new era in the Society’s long history and will provide a bright and sustainable future for all existing and future members.
“The Cambridgeshire County Council Pension Fund is the ideal partner for The Cambridge as we share the vision of delivering long-term benefits for residents and the local economy. This synergy replicates the original founding of The Cambridge which was Cambridge people coming together to help themselves and others.”
Councillor Roger Hickford, Chairman of the Cambridgeshire County Council Pension Fund said: “The Cambridgeshire County Council Pension Fund welcomes the opportunity to invest in a long-established Cambridge-based business and in supporting local people in buying local homes. We applaud The Cambridge on this innovative share issue which will provide a stable and attractive investment return for our pension fund members.”
Peter Burrows, Finance Director of The Cambridge said: “The capital injection we receive will let us build on recent investments in the business as well as allowing us to lend more in the form of mortgages. The structure of the investment preserves The Cambridge’s status as a member-owned, mutual organisation. More people from across the region will be given the opportunity to own their own home, funded by a modern, forward-looking and wholly independent Society.”
Simon Warburton, finance lawyer at Mills & Reeve, the law firm who advised The Cambridge, said: “We were delighted to be able to support The Cambridge in this ground-breaking partnership with such significant local benefit. We relish the opportunity to help clients’ secure alternative sources of finance and meet their increasingly complex challenges.”
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Notes to Editors:
- Core Capital Deferred Shares work in a similar way to shares but the rights are limited, as there is only one vote regardless of how many CCDS an investor buys. The Cambridgeshire County Council Pension Fund will have one vote, putting them in line with other members and protecting The Cambridge’s mutual status.
- The legalities of this investment deal were supported by Mills & Reeve, a major UK law firm renowned for its outstanding service to national and international clients, for its collaborative culture and for its deep sector expertise. The firm has been named for a record fourteenth year running as one of the 100 Best Companies to Work For in The Sunday Times’ annual survey.
- Established in 1850, The Cambridge is an independent, mutual organisation which offers mortgages, savings and more
- The Cambridge Building Society is the 14th largest Building Society in the UK
By Leanne Simons on Wednesday 6th September 2017