Private Equity - Social Responsibility
Every deal is an opportunity to have a positive impact on the communities in which we operate
We encourage socially responsible behaviour from all our portfolio businesses and on occasions have made this a condition of our deals. One example is Deutsche Annington, the largest residential real estate company in Germany, with over 240,000 units under management. Deutsche Annington was established by Terra Firma to acquire the housing units that were owned by the German railway. Since its creation in 2001, Deutsche Annington has committed to tenant and employee protection provisions which include restrictions on rent increases and sales of properties as well as guaranteed maintenance expenditure. Deutsche Annington also works closely with stakeholders such as labour unions and tenants’ associations. Its reputation as a socially responsible landlord has led to Deutsche Annington receiving endorsements from various labour unions.
The DAIG Charitable Foundation was set up when Deutsche Annington acquired the railway flats in 2000 to demonstrate its intentions as new landlords. The Foundation is a legally established charity which has an endowment of around € 5m. It uses the interest from the capital to help DAIG tenants under a number of defined categories, including health and educational support, when they can't get help from elsewhere. Examples of awards that have been made include computers for school children, support for disabled tenants, additional household appliances and support for funeral expenses.
Another example of social responsibility in our portfolio businesses is The Annington Trust, which was set up in 1996 at the time of the purchase of the housing for families in military service by Annington Homes. It was one of a number of measures taken by the company as part of its commitment to families living in Service accommodation. A capital sum was contributed and the Trust was established to support activities and projects ‘on the patch’. Income from the capital sum is used bi-annually to make grants to successful applicants.
The Annington Trust has made grants to a variety of projects to benefit families living in service accommodation. These have included support for community centres, playschools, welfare offices and youth activities.