A new initiative from the Music Venue Trust (MVT) has been launched to try and purchase the freehold of grassroots music venues across the UK, in a bid to secure their long-term futures.
MVT are carrying out this bold plan by having set up Music Venue Properties (MVP), which in its capacity as a Charitable Community Benefit Society (CCBS), can raise money via community shares.
By purchasing these shares, music fans and ethical investors will be part of raising funds to buy the freeholds of music venues – and will also receive a 3% annual return on their return. Win win.
MVP has said it’s identified 9 venues for a pilot project and to establish a proof of concept: six venues in England, two in Wales and one in Scotland. The project is aiming to raise £3.5 million to secure this.
Mark Dayvd, the CEO of MVT, has described the plan as the most ambitious initiative the Trust has undertaken. “The long-term security and prosperity of grassroots music venues depends almost entirely on one thing – ownership,” he’s said.
“Too many have been at the mercy of some commercial landlords whose motivations revolve primarily around profit… we are at the cliff edge and could see the decimation of our sector if we don’t do something radical about it.
“The Music Venue Properties scheme will allow ethical investors and music fans to invest in the future of live music while receiving a healthy return on their money… We already have the crowd – we just need to ask them to invest from May 23rd and are confident they will.”
The facts and figures surrounding why MVT are seeking to create such a project are stark. In the past 20 years, 35% of grassroots music venues have closed and 93% of them are currently tenants with an average of just 18 months left on their tenancy.
The pandemic hit such venues especially hard and whilst many (often in government) like to point to the Cultural Recovery Fund as something that helped them out, an astounding 67% of that funding went to landlords. All the while, according to MVT, the sector acquired £90million of new debt in that period.
MVP, which aims to be launched in May, with a view of purchasing the identified venues by the end of the year, can take confidence in the £4.1million that was raised by MVT’s #SaveOurVenues campaign during COVID.
That campaign saw over 80,000 people contributing. So with the added incentive of a return on investment, plus being part of something hoping to secure the long-term future of our grassroots venues, it’s hoped they’ll be able to drum up support for this worthwhile cause.
MVP have also said they can offer the majority of current operators an immediate rent reduction and help contribute to building repairs and insurance.
