OWN OUR VENUES

35% of GMVs have closed in the last 20 years

93% of GMVs are tenants and the average operator has 18 months left on their tenancy

Since the start of the COVID crisis the sector acquired over £90m of new debt, yet 67% of Cultural Recovery Grant was paid to Landlords

GMVs and Landlords have different motivations. Landlords want to maximise investment. GMVs want to plan for the future, invest in sustainability, accessibility, diversity, artists and the venue itself

The issue of ownership underlies almost every other challenge that GMVs have faced during the last twenty years: gentrification, noise complaints, under investment, poor economic model and an inability to plan for the future

WHAT IS THE SOLUTION?

GMVs purchase their own properties. This is difficult to achieve and creates long-term problems such as succession planning

GMVs create Community Groups to purchase freeholds. We support operators/communities with advice and guidance to achieve this, but many do not have the resources or the ability to raise funds. Others are in areas of high deprivation

Music Venue Trust (MVT) creates a central charitable organisation to remove venues from commercial ownership. By purchasing freeholds and renting them back to operators on a friendly lease we can reduce rents, make contributions to insurance/repairs and offer rent breaks in the face of adverse conditions

SOLUTION: MUSIC VENUE PROPERTIES

MVT has set up a Charitable Community Benefit Society (CCBS) named Music Venue Properties (MVP)

Unlike a charity, a CCBS can raise money via Community Shares

By purchasing these shares, music fans and ethical investors will help raise funds MVP will use to buy freehold, whilst also receiving 3% APR on their investment

We can offer the majority of current operators an immediate rent reduction and help contribute to building repairs and insurance

MVP will offer long-term security and market resistant rents

MVT's #SaveOurVenues campaign raised over £4.1m with over 80,000 people contributing during COVID. We already have the crowd - we just need to ask them to invest

WHAT HAPPENS NEXT?

MVP has identified 9 venues for a pilot project that will allow us to establish proof of concept.
6 venues are in England, 2 in Wales and 1 in Scotland

We will raise £3.5m to purchase these venues and associated venues

We launched our Community Share Offer in May 2022 with a view of purchasing these venues before the end of 2022

This share issue will create the circumstances where great venue operators have the security and confidence they need to create great venues

We will then continue to identify and purchase venue freeholds as and when they become available. We will then continue to raise funds through selling community shares and borrowing against the freehold we have purchased

We will reinvest the rent received from the initial pilot venues to allow us to expand our portfolio