FAITH PROPERTY TRANSITION FUND
Investing in a new future for thousands of religious properties
The Trinity Centres Foundation (TCF) is preparing to launch a new financing structure (target $100MM) aiming at the transition of surplus religious properties (churches, monasteries, etc) into either new housing or community hubs. The impact of this work is the creation of affordable rents for both families and non-profits using the existing social infrastructure of social purpose real estate (SPRE).
Issuer
Founded in 2019, TCF is Canada’s leading charity focused on the redeployment of religious properties. See our Financial Statements, Governance and Team information.
TCF currently operates a consultancy and brokerage to help create sustainable development plans suitable for onward financing by Community Foundations and other local social finance consortia.
Market
There are 17k religious properties in Canada, most of which are owned by religious charities. Of Canada’s 86k registered charities, 21k are Christian congregations, of which 12k own real estate. Between 2009 and 2018, 17% (4.3k) of Canada’s churches closed, representing a shift in $15+ billion in land value. Some 3,250 remaining land-owning congregations have experienced multi-year deficits and have less than 3 years of cash reserves. TCF is focused on 1000 properties of this kind, which are also located on or near a ‘main street’ location. An example of TCF’s city engagement model, may be found here.
Problem
Thousands of places of worship are closing across Canada, whilst secular charities, nonprofits and affordable housing developers are hoping for opportunities on these prime lands.
Business Plan & Use of Funds
TCF’s current business plan is based on a charitable consultancy and property brokerage model with 5 years of cash-flow positive operation. TCF’s Transition Fund model business plan is a mortgage and ownership model, details for which are available to qualified investors.
Solution
TCF is currently assessing three different funding models:
Equity Investment (LP/GP Structure) allowing investors access to the property uplift in remediated properties (targeting 5% IRR) whilst ensuring measurable social outcomes of rent reduction for housing and/or community hub deployments.
Long Term Debt in combination with a credit enhancement vehicle, allowing for a patient capital instrument to serve local communities.
New SPRE Ownership Vehicle allowing a long-term hold option for institutional investors, in conjunction with government-led credit enhancement.
Trajectory
TCF’s hopes to catalyze a system-changing structure for religious and social purpose real estate, leading to the eventual sale/lease-back and wholesale transition of religious property, to the benefit of all society - and indeed to the faith-based steward owners of today.
Our Work & Partners
Any securities which may eventually be discussed or created are subject to a variety of Canadian and International regulatory and legal conditions. At this time, TCF makes no representations or warranties about the nature, size, conditions or any other feature of such security.