News

Organisation to negotiate short-term property leases for charities

Finance | Gareth Jones | 2 Sep 2010

Woolworths stores are being targeted by a new charity created to act as an intermediary between landlords with empty premises and charities seeking properties.

3Space aims to take advantage of the number of empty properties resulting from the current economic climate, saving landlords from paying business rates and giving charities free use of buildings while a permanent tenant is found.

It is utilising the Department of Communities and Local Government’s Meanwhile Use Lease, which is designed to allow landlords and tenants to enter into agreements quickly.

Registered in June this year, the charity has recently secured its first property in North London and is in discussions regarding a number of others.

Reduced hassle for landlords

3Space has been created by Henry Mason, a former KPMG accountant, and Andrew Cribb, who has a background in the London Development Agency.

Speaking to Civil Society, Mason said: “How we are trying to operate is by going to a landlord and providing an intermediary service able to take on multiple properties, maybe five or ten shops across their whole portfolio, because for them that’s a more attractive proposition as they only have to deal with us once.

“We see it as a real sticking block that when an individual charity just wants to use a room in an office or a single shop, landlords are reluctant to do that because its still the same level of work and hassle and legal due diligence.”

Woolworths stores “tricky”

Mason confirms that he has instructed property agents to look for empty former Woolworths stores, of which 300 are reported to still be empty, but adds that they have been tricky to get hold of as these remaining spaces tend to be owned by individual landlords who are harder to track down than commercial property firms.

Mason also emphasises that while he is willing to speak to charities, by necessity 3Space will be identifying properties and then offering them to charities, rather than attempting to fulfil requests.

“It’s very hard for us to offer a charity a guaranteed six months in a specific property, and if they want that arrangement then we would encourage them and support them to go to the landlords direct.”

Image courtesy of fsse8info

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