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Dewsbury Arcade
by Chris Hill in Dewsbury, West Yorkshire, United Kingdom
We did it
On 24th November 2023 we successfully raised £52,520 with 200 investors in 43 days
£75,000 INVESTMENT FROM KIRKLEES COUNCIL AND CO-OPERATIVES UK DOES NOT APPEAR HERE. If we hit £75,000 on here, we've hit £150,000 overall
by Chris Hill in Dewsbury, West Yorkshire, United Kingdom
Welcome to our community investment page. The Arcade Group want to raise £150,000 by mid November to finance all the start up costs needed to run Dewsbury Arcade. The first community run shopping centre in the UK.
The minimum investment is £50, the maximum £10,000
The Share Offer Document and Business Plan give the details of what we intend to do, why we need the investment, how it will be used and the risks involved. The documents also explain how we intend to repay your investment within five years if you want to withdraw your money.
Why invest?
The Arcade Group, owned and run by its shareholder members, will run the fully refurbished Victorian Arcade on a 10 year lease from Kirklees Council starting 2025.
The Arcade is made up of 16 small shops, 4 large end units, 8 studios and office workspace. We want it full of interesting businesses, new to Dewsbury. Not take-aways, nail bars and vape shops.
We will fix the rents and choose the sort of tenants we want, make sure the arcade is full and reinvest profits in the business. No more absentee landlords and sky-high rents. We will build back Dewsbury town centre in the only way possible – from the bottom up, with the backing of local people.
Like any business, we need your investment to cover start up costs through to the point that rent income will cover those costs
Photo Kevin Kitching Photography 2019
Who we are
The Arcade Group was formed by a eight local business people and residents in 2020. They volunteer their time for no personal gain. The business is registered as a community benefit society, and assets will always belong to the community.
All Board members have experience of running a business and are well placed to manage your investment carefully. We want to involve as many people as we can, from all sections of the community, in running and shaping the arcade.
How we got here
The Arcade has always been loved by Dewsbury residents and for over a hundred years was busy and full. After 2011, a combination of bad distant management and retail trends, emptied out the arcade and it shut in 2016.
In 2020 Kirklees Council bought the Arcade off the private owners and set about raising the cash to re-furbish it. The structural decline was greater than anticipated and a bid had to be put to the National Lottery Heritage Fund to fill the gap between costs and the existing budget. In July '23 the Council, with the Arcade Group as its community partner, was awarded £4.5m. Construction work will begin in 2024. None of the refurbishment money comes to the Arcade Group, which is why we need your support
The Future
We want our shops and cafes to attract people back to the town centre. The desire to get out of the house, meet people, and do things hasn't gone away, but the town has to reinvent itself as a place worth visiting and we can't do that alone. The Arcade Group will work other businesses, landlords and the refurbished Market management to attract more businesses, put on events and pull people back. We've already got a World Food Festival and Vintage Day planned for next year!
Picture of a party in Paragon Arcade in Hull
The Business Case
The Business Plan goes into the detail. As well as keeping a lid on costs, the number of tenants in the arcade is critical to financial success. When only 60% of the arcade is occupied, we make no profit. At our 82% target occupancy level we make enough profit to repay shareholders within 5 years and still make a good surplus.
Rents will be kept as low as possible, but we have to make a profit. Everyone will be able to see where the money has gone in our public accounts.
Buying Shares
- Minimum investment is £50, maximum £10,000
- No interest will be paid on your investment, but if the business is successful, on request, we will attempt to repay your investment within the first five years of operation
- Share Offer Document, Business Plan and Rules are available here. Risk Register and Marketing Plan can be viewed on our web site www.arcade-dewsbury.org
- Kirklees Council are now committed to investing £25,000 as other investment has reached £75,000
- Co-operatives UK awarded The Arcade Group £50,000 match funding on Nov 3rd '23
Frequently Asked Questions
Who are the Arcade Group?
A group of 8 individual entrepreneurs that came together in 2020 with the idea of running the Arcade in the interests of Dewsbury and using it as a springboard to improve the town centre. 6 of the 8 live in Dewsbury, the other two work in Dewsbury. The Group is completely independent of the Council.
Why does the Arcade Group need money?
The Group currently has no cash. Like any business it needs start-up capital to pay for everything (marketing, management, legal etc) to the point that rent income is sufficient to cover costs.
What chance is there of reaching the £150,000 share target?
Every chance. On November 3rd, Co-operatives UK awarded the Group £50,000 match funding. For every £ invested by the public they will add another £ up to £50,000. In addition, Kirklees Council will invest £25,000 once £75,000 has been raised from other sources. A point that has now been passed. Adding it all together, on Sunday 5th Nov the share raise total stood at over £112,000.
The close of the share issue has been extended to Friday 24th Nov to give us the time to reach the £150,000 target.
What is being spent on the Arcade?
Kirklees Council have allocated £2.5m to the project. Most of this has been spent on purchase costs (including Moneypennys next to The Arcade), surveys, fees and making the arcade safe and watertight. What is left is being put into the construction project.
Subject to final tender analysis, the value of the construction contract will be around £6m with £4.4m coming from National Lottery Heritage Fund and smaller amounts from the West Yorkshire Combined Authority and the Town Fund.
Why can’t this money be used to keep open the Sports Centre and prevent cuts?
The national funds that the Council have obtained to refurbish the Arcade are for new capital works and in the case of National Lottery Heritage Fund, only heritage buildings. The money cannot be used for maintaining services.
When will building works start and finish?
The works have been tendered by Kirklees Council to a pre-approved list of contractors. Final outcome of the process will be known at the end of November. The Council will undertake the works from early ’24 to early ’25 prior to the Arcade Group taking the lease. The Arcade should open Easter ‘25
What happens if the Arcade Group does not achieve its £100,000 minimum target?
The £100,000 minimum target has now been reached. Your money is held by Crowdfunder in a ring-fenced account until the share offer closes, at that point it is put in the Arcade Group bank account and we issue you a share certificate.
What happens to my investment if the share target is reached and the Arcade Group trades successfully?
If profits are sufficient all your money will be returned within 5 years, barring the £1 share that keeps you as a voting member.
What happens to my investment if the Arcade Group business fails?
If the Arcade Group goes into administration, the lease will revert to the Council and you will lose your money
Levels of Investment
£50 or more
Featured
£50 or more investment & reward
This will give you 50 shares or more, membership and part ownership of the Arcade Group Community Benefit Society. You have a say in the running of the arcade and its future – one member, one vote • Plus your name will be inscribed on a work of art in the Arcade • You can add additional investment at the checkout to increase your number of shares.
£200 or more
£200 or more investment & reward
This will give you 200 shares or more, membership and part ownership of the Arcade Group Community Benefit Society. You have a say in the running of the arcade and its future – one member, one vote • Plus use of VIP Room in Town Hall at Food Fair and Vintage Day + a free copy of Arcade Reflections - memories of Dewsbury Arcade • You can add additional investment at the checkout to increase your number of shares.
£500 or more
£500 or more investment & reward
This will give you 500 shares or more, membership and part ownership of the Arcade Group Community Benefit Society. You have a say in the running of the arcade and its future – one member, one vote • Plus a discount shopping voucher from Dewsbury Arcade tenants • You can add additional investment at the checkout to increase your number of shares.
£1,000 or more
£1,000 or more investment & reward
This will give you 1,000 shares or more, membership and part ownership of the Arcade Group Community Benefit Society. You have a say in the running of the arcade and its future – one member, one vote • Plus a special dinner for these Arcade champions (more details to follow) • You can add additional investment at the checkout to increase your number of shares.
£2,000 or more
£2,000 or more investment & reward
This will give you 2,000 shares or more, membership and part ownership of the Arcade Group Community Benefit Society. You have a say in the running of the arcade and its future – one member, one vote • Plus all the rewards stated above • You can add additional investment at the checkout to increase your number of shares.
£2,500 or more
£2,500 or more investment & reward
This will give you 2,500 shares or more, membership and part ownership of the Arcade Group Community Benefit Society. You have a say in the running of the arcade and its future – one member, one vote • Plus all the rewards stated above • You can add additional investment at the checkout to increase your number of shares.
£3,000 or more
£3,000 or more investment & reward
This will give you 3,000 shares or more, membership and part ownership of the Arcade Group Community Benefit Society. You have a say in the running of the arcade and its future – one member, one vote • Plus all the rewards stated above • You can add additional investment at the checkout to increase your number of shares.
£5,000 or more
£5,000 or more investment & reward
This will give you 5,000 shares or more, membership and part ownership of the Arcade Group Community Benefit Society. You have a say in the running of the arcade and its future – one member, one vote • Plus all the rewards stated above • You can add additional investment at the checkout to increase your number of shares.
£10,000 or more
£10,000 investment & reward (Maximum)
This will give you 10,000 shares, membership and part ownership of the Arcade Group Community Benefit Society. You have a say in the running of the arcade and its future – one member, one vote • Plus all the rewards stated above • Maximum investment per investor is £10,000.