Real estate pumps tens of millions into Covid-19 relief effort

Real estate companies across the UK are ploughing tens of millions of pounds into charitable funds to support communities affected by the coronavirus pandemic Industrial REIT SEGRO this week became the latest landlord to commit to donating a seven-figure sum to the ongoing Covid-19 crisis. The REIT was due to launch a 10-year, £10m charitable fund next month as part of its centenary celebrations, but has brought the launch forward so that it can dedicate much of the first year’s funding to projects that provide emergency relief such as food, medicines and household essentials, and that help address the longer-term impacts of the disease. SEGRO is already providing rent-free space across dozens of its assets for food banks and community hubs. Chief executive David Sleath said while charitable giving was part of SEGRO’s DNA, he thought it was important that corporates stepped up further in the face of the current global crisis. “Businesses need to step up and go above and beyond normal corporate philanthropy,” he said. Sleath and the rest of the SEGRO board have also agreed to waive 25% of their salaries and fees for the next three months, with that cash being ploughed into the fund. Over the longer term, the SEGRO Centenary Fund will be used to support community projects that help young and disadvantaged people into employment and will create community spaces to support people’s training, health and wellbeing.  Sleath said more than 30 potential projects had already been proposed as potential beneficiaries of the fund, which will operate across its UK and European business. “The SEGRO Centenary Fund is one way of recognising the vital role our communities have played in our success over the past 100 years and making sure we give something back by helping thousands of people now and over the next decade,” said Sleath. “Many of the areas where we invest are characterised by high levels of unemployment and social deprivation. We understand the long-term need to ensure people from all backgrounds have the skills, training and opportunities to secure meaningful employment. These are the areas where we are focusing the SEGRO Centenary Fund and where we feel we can make a significant difference to people’s lives.” Also this week, Countryside Properties launched a £1m Covid-19-focused fund to support charities in locations where it operates. Its executive committee and board of directors have also agreed to a 20% reduction in their base salaries and fees from 1 April until at least 1 June, with the equivalent amount being added to its communities fund. British Land has already established a £1.2m fund, Landsec a £500,000 fund and Shaftesbury a £144,000 community fund. Board directors from all three listed companies have agreed to 20% pay cuts for at least three months to support the establishment of those funds. The Duke of Westminster, the ultimate owner of the Grosvenor Estate, is one of the biggest real estate donors so far, providing some £12.5m of funding to the Covid-19 relief effort. The duke, Hugh Grosvenor, said: “While the impact of this crisis is being felt immediately, the virus will sadly also affect people’s lives long into the future. That’s why I’m keen to support the longer-term scientific and socio-economic response to the epidemic. Through these donations, my foundation will work with a range of fantastic charities and organisations that are able to help vulnerable people in the difficult months ahead.” Through the Westminster Foundation, the duke is donating £5m to NHS Charities Together, specifically to create a family fund that will support NHS workers and their families; £3m to national medical research and development linked to Covid-19 and £2m to charities and organisations providing frontline support to people who will feel the greatest long-term economic and social impact of the epidemic and may need access to employment, education and mental health services. Last month he made an initial donation of £2.5m to charities providing essential food distribution. LandAid, the property industry charity, has also established a £1m fund to help charities providing essential support to homeless people during the crisis. Some £500,000 has already been raised with donations from Allsop, CLS Holdings, Grosvenor Estate, Helical, Knight Frank, Landsec, Logicor, M&G and Savills. To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette