Management Seminars: Tom Wainwright
Dr Tom Wainwright (RHUL)
G.15, 15-19 Tyndalls Park Road
Title: (Sub)priming the third sector for investment? The financialization of social housing
Since the global financial crisis (GFC), real-estate capital markets have faced uncertainty, with many established investors shunning securitized financial products. Institutional investors have been seeking alternative real-estate assets that they can switch capital into, creating new real-estate bond markets. This has led to the development of a ‘new’ social housing bond market, with the assets of third sector organisations being financialised. The third sector has historically privileged the creation of social over economic value, but in the development of bond funding programmes, these social organisations have had to reconfigure their processes and practices to become compatible with financialization. The priming of these non-market organizations has required a series of socio-technical changes. These include, changes in the background and experience of senior management teams, the development of new financial metrics, new management control processes and the co-creation of new knowledge, to align the activities of social housing with the politics of financialization. This paper provides new insight into the organisational changes occurring within the social housing sector and how they are undermining the social mission of these actors. In doing so, the paper explores how the financialization of real-estate is continuing post-GFC, as institutional property investors and capital market intermediaries extend their networks into new sectors, to seek new sources of fees and returns.