Historic Rennie MacIntosh building set to become third sector hub
A new third sector hub is being planned for one of Scotland’s busiest thoroughfares - enabling small-to-medium sized charities to lease or purchase office space in central Glasgow.
The Scottish Council for Voluntary Organisations (SCVO) purchased the 20,000 square feet of retail and office space in Sauchiehall Street with a loan finance deal from ethical lenders Unity Bank.
SCVO bought the building from the Willow Tea Room Trust – securing the longer term future of the world famous Rennie Macintosh tea rooms which form part of the building.
Alongside the office space, a retail outlet is being made available with SCVO saying it is open to innovative ideas for its lease or purchase.
It brings the number of third sector hubs operated by the umbrella body to five with some 35 organisations currently residing in offices in Glasgow, Edinburgh and Inverness.
By pooling resources, the organisation says it has been able to secure prime locations for the third sector in city centres where usually smaller organisations would not be able to afford the higher rentals these premises attract.
It also means the cash will allow the Willow Trust to secure its own future and expand operations with plans to create a Mackintosh visitor centre and retail outlet, helping to boost tourism and regenerate Sauchiehall Street.
John Ferguson, director of development at SCVO, said the model meant partner organisations are able to enjoy the benefits of a large modern city centre office at substantially less cost.
“We are responding to a need within the third sector where organisations want good quality premises in city centre locations,” he said. “It’s very much a partnership – cost savings are passed on to the organisations and that’s why we’ve been able to expand our property portfolio.”
More than ever, charities want to support the sector and others within in it - John Ferguson
Organisations are increasingly looking to these “partnership buildings”, said Ferguson, as they were not only cost-effective but fulfilled ethical objectives.
“More than ever, charities want to support the sector and others within in it,” he said. “They want their cash to stay in the third sector and are increasingly mindful of that. So the model is an ideal way to support the sector.”
Gordon Allan, relationship manager for Scotland at Unity Trust Bank, said the investment will encourage job creation and add value to the local community, both of which were central to its purpose as a specialist bank for the social economy.
“This is the third loan we have provided to SCVO for property acquisition in a major Scottish city and we are keen to work on similar financially sustainable projects that support Scotland’s social economy,” he added.
The move is backed by Alastair Davis of Social Investment Scotland.
“As well as supporting the restoration of the Willow Tea Rooms, this investment will help create jobs, support tourism, and open up the world of Scottish artistry and architecture to a wider social demographic,” he said.
“Importantly, the trust’s ability to generate revenue from the retail outlet and rented commercial space next door will help to make it financially sustainable. This is an excellent example of how taking on investment and a social enterprise business model can secure the long term future of charities like the Willow Tea Rooms Trust.”
The rise and rise of third sector hubs
Voluntary sector hubs – or partnership buildings as they have come to be known – meancharities are able to enjoy the trappings and locationsof more expensive buildings at a fraction of the cost.
It’s not onlysmall organisations unable to afford their own premises that gravitate towardsthis model, however – often larger organisations see the cost-saving benefits ofshared premises, further enticed by the fact these hubs are fully serviced withIT, cleaning and many back office functions.
The other benefitis it keeps cash in the third sector. Essentially hubs are run as socialenterprises – meaning partner organisations keep finance circulation in thesector to the benefit of the communities they serve.
“It’s not anew model – but it is one that is becoming more popular as funding getstighter,” says John Ferguson, SCVO’s director of development.
“Organisations don’t want to throw good money after bad; they actually want to see an ethical return for all their investments. That, combined with cost savings, is why they are successful.”
For Celia Sinclair, founder of The Willow Tea Rooms Trust, the deal with SCVO is a perfect example of this. “When we bought the existing Willow Tea Rooms last year inorder to upgrade it and restore it to its former glory,” she said.
“We were interested in the adjoining buildings and coming on the market when they didcouldn'thave arrived at a better time.
“With this partnership we have a great opportunity to createsomething truly special and sustainable in Sauchiehall Street that willcelebrate and safeguard Charles Rennie Mackintosh’s legacy and enable us tocontinue to support that vision as an organisation.”
