A mission-related property purchase

Much discussion these days focuses on bridging the gap between grants and investments and bringing investments closer to the mission of a foundation. If even parts of a foundation’s investments were used to support the purpose of its grants, they could significantly increase the capacity of grantees. But could it also be a meaningful investment in financial terms?

The purchase by the Oslo-based Freedom of Expression Foundation (Fritt Ord) of a property for a group of London-based grantees seems likely both to prove a sound financial investment and to benefit its grantees.

Fritt Ord has for many years supported Index on Censorship with ordinary money grants. For some time Index, Article 19 and several other organizations had been planning to establish a new International Centre for Free Expression. Last summer, former Index director Ursula Owen found a suitable building for the new Centre, but it had to be bought, not rented – which they could not afford. ‘Why can’t you regard it as a finely situated London property investment, and let us use the building for, say, ten years?’ was Owen’s proposition to Fritt Ord.

The property in question was 60 Farringdon Road, the Guardian Newsroom building, complete with auditorium, exhibition space, seminar rooms, offices and a café. The price was around £4 million. After protracted negotiations with the Guardian Media Group, agreement on the sale has now been reached. A new charity, the Freedom of Speech Foundation UK, has been established to support the work of the Centre, which will open by the end of 2008.

The seven or eight organizations joining forces will all contribute to a maintenance fund on advantageous terms. They believe that the new Centre will strongly enhance their capacity, position and visibility during the next 10 or 12 years. They are aware that after that Fritt Ord will be morally and legally entitled to sell the property. This may well raise complex problems for them, but they are unlikely to be insoluble if addressed in time.

Erik Rudeng is Director of Fritt Ord. Email erik.rudeng@fritt-ord.no

For more information
www.fritt-ord.no