The community buy-out of The Old Forge in Inverie rumbles on. They've launched their share offer today - non residents need quite deep pockets to invest, but here's the link in case it interests anyone here:
For those of us who wish the project well but don't have that kind of cash to spare, there's a crowdfunder being launched next month.
I got the impression that it was £10,000 (minimum 10,000 shares for a non resident at £1 each ) but I could be completely wrong!
From my reading to ensure the requirement that the majority must be residents and the low level of minimum cost set for residents, it means that non resident shareholders must be limited and so it’s been set that they must buy a minimum of 10000 shares at a cost of £10000.
From the prospectus:
“Minimum investment amount for Type A Resident members is £25, and for Type B Non-Resident/Corporate/Joint members is £10,000.”
You would have to be off your rocker to invest £10,000 in that! 2% return after 3 years, no increase in value and no profit return.
Not all invedstment is done with a finnancial return in mind.
Plenty of people might like the idea of supporting a community based project, with the hope of making a difference to the community and visiting outdoor enthusiasts.
> You would have to be off your rocker to invest £10,000 in that!
The return is 20x base rate. Off your rocker?
I haven't got 10,000 spare either, but quite a few do. And although you are not going to get rich off investing it in the old forge, there is a reasonable chance that it will maintain it's value at least, which is all your money will do in a bank anyway.
So potentially that investment isn't going to cost you anything.
Could we set up a UKC share account? Share holders getting there dividend paid with a pint at the Old Forge once a year, proof of membership based on the answer to a simple UKCentric question…..
Now this discussion will ramble on about the nature of said question....
TPS? Plane on a treadmill? the colour of TobyA's pants? is Wintertree really Rom??!
> Not all invedstment is done with a finnancial return in mind.
Across the country there are many deserving community pub buy-outs. Most have proper business plans beyond ‘we hope it’ll get busier’. Asking for £10k with a £400 payback over 5 years and no other perks or promise of profit share is taking the piss. I might have considered £1k as I’m in Knoydart not infrequently but there are far worthier ‘charities’ where I could put 10k.
The main issue with the £10000 minimum is that this is a very illiquid investment. The return is less of an issue. There is every possibility that you'd be unable to get your money out when you want to so £10000 is quite a commitment. It should definitely be treated as money that you don't need and don't foresee needing, with the purpose of supporting a community venture.
> I completely agree with this but can’t help but thinking £10k is setting the bar high . Can’t be that many altruistic people with that much kicking around who are also interested in supporting a remote Scottish community
They have a max permitted of 25 non resident applications. That can only go down depending on how many residents and much they invest in their own community venture (which is of course for their benefits mainly anyway). I think it’s a deliberately high min for non residents because they may only need a few, if any at the end of the day, as if all other sources bring in enough monies they may not approve any - crowd funding is an unknown until it’s underway, but potentially could go “viral” and bring in enough monies not to have any non resident shareholders.
Any non resident applications, if any are actually put in or accepted, I think will only be from those with strong reasons other than straight financial and most likely who can afford to loose it; effectively seeing it as a worthwhile cause to “gift” to - philanthropists?
Oops, sorry. It was really clear in the email (I'm on their mailing list), so I didn't realise it wasn't obvious on the page that I linked to.
> I completely agree with this but can’t help but thinking £10k is setting the bar high . Can’t be that many altruistic people with that much kicking around who are also interested in supporting a remote Scottish community , there will of course be some .
They're only looking for a very few, so perhaps they're in with a decent chance of finding them in that case. I imagine they'd prefer the 'outside' investors to be people who feel a strong personal connection to the place anyway, so it's highly unlikely that any of them will be evaluating the investment in purely dispassionate financial terms.
Too rich for me though, so I'll be chipping in a few quid to the crowdfunder instead in the hope of enjoying a pint in a friendly and welcoming pub the next time I'm there the way I wasn't able to the last time.
Indeed, and I wish them well too.
> Any non resident applications, if any are actually put in or accepted, I think will only be from those with strong reasons other than straight financial and most likely who can afford to loose it; effectively seeing it as a worthwhile cause to “gift” to - philanthropists?
I don't think 25 x £10,000 will be at all hard to raise given the unique nature of Knoydart. It's chicken feed in the context of the money swilling about the UK.