Community Assets Remain an Issue for BME VCSEs

Voice4Change England has long held the view that charities and community-run non-profits have a much better chance of survival when they have control of capital assets than those that don’t. This was backed by various studies conducted in the mid-2000s following the economic recession that hit the UK.

However, in the last couple of years, we have seen BME organisations that control major capital assets struggle to stay afloat financially. This trend seemed to come to a head two weeks ago when the nationally famous Africa Centre in London announced that it was suspending operations pending a major financial and strategic review.

Sparked by ongoing debts of over £800k, the organisation is today left fighting for its life, while its CEO and Board Chair prepare to depart. This also follows in the wake of Trust for London’s much-loved London Resource Centre on Holloway Road, which closed its doors in spring 2026 after many years of turning an old department store into a national meeting place for many Third Sector activities.

Back in 2012, the Africa Centre sold its Covent Garden building for £10.5m, despite a vocal campaign from some of its members against the move. For many of its supporters, leaving a prime central London site like Covent Garden was a mistake. Leaving behind a location that many public and private institutions would have loved to have seemed to make little sense. But the Board argued that refurbishment of the historic but ailing listed building was not an option and that they had to sell up.

Unfortunately, the timing of the move to Southwark could not have come at a worse time, socially and financially. Escalating energy costs, building construction coinciding with the COVID pandemic, and dwindling income generation were among the many problems the charity faced on a continuous basis. It only generated a financial surplus in two of the last 15 years.

In a statement published online, the Centre said:

The situation the Africa Centre finds itself in is not unique at the time of writing. A fair number of community social spaces in cities such as Nottingham, Birmingham and Manchester are also facing challenges and potential closure.

So, should we be rethinking our approach to supporting the acquisition of capital assets by community groups? As far back as 2015, when Ubele Community published the report A Place Called Home, the disappearance of community social spaces was already a concern. Even then, that trend has continued.

So, should we be rethinking our approach to supporting the acquisition of capital assets by community groups? I don’t think we should, but I do think there are some key features we need to have in place:

• Firstly, the need for VCSEs, particularly smaller groups, to work together. This means partnering and collaborating around physical assets. This could mean working with other local groups that are looking for a base, but also means working with your local authority to keep them informed and onside.

• Secondly, we need to examine how information is going out across the BME VCSE sector and target communities that have not taken up offers of support. Legal resourcing is also important.

• Thirdly, we need better knowledge of the Localism Act. Many BME groups have come late to its possibilities, only just becoming aware of the Act and some of the opportunities available for community groups, social enterprises and charities.

I believe there is still much value in investments in community-held assets.

To underline that point, we can see that there are still exciting new projects coming through:

• In Bristol, the Black South West Network is soon to relaunch The Coach House. Their new building in St Paul’s has undergone a substantial programme of refurbishment, representing an important step in its development as a centre for Black enterprise and cultural heritage. I, for one, am looking forward to attending the launch in October.

  
  

• In London, Brixton Village and Market Row have been put up for sale by their current owners, Hondo Enterprises and TPG Angelo Gordon, prompting an emergency community counterbid to bring the spaces into public ownership.

  
  

• Using levers within the Localism Act, Brixton Village has been designated as an Asset of Community Value, creating extra protections for the site.

Lambeth Council has said:

• Some 38,000 people have signed a local petition in favour of a buyback campaign, led by local community traders and residents. They estimate the value of the site at around £50–60m and have submitted a credible bid to secure the site. Time will tell if the campaign succeeds.

• Pathway, the BME investment wholesaler, is also putting into its plans a strand of capital investment funding to buy, build or upgrade long-term physical assets such as buildings, land and major equipment. Though still at an early stage in its planning, it hopes to eventually be able to work with communities in need of capital investment as one of the central pillars of its strategic plan.

Finally, all is not lost at the Africa Centre either. A campaign to immediately raise funds has been launched. Supporters have rallied around the Centre and reaffirmed its unique place as a cultural home for African communities in London and beyond. They aim to raise enough money to help reopen the doors, stabilise operations and create breathing space for a more resilient future.

No doubt these are very difficult times for institutions that own buildings, but I feel strongly that, with local community support and new creative ideas, new business models will emerge to deal with future challenges.