Investigation Launched into Potential Risks Facing Multi-Million Pound Charity Property

The House of St Barnabas was established in 1862 to offer temporary relief and support to individuals facing homelessness. However, the charity entered liquidation in January 2024. This situation affected its associated organisation, The House of St Barnabas in Soho. Following the liquidation, a new corporate trustee, The Explorers Club (Soho), was appointed to oversee the charity, replacing The House of St Barnabas.

In early 2026, The Explorers Club (Soho) entered into a licence agreement with a private entity, The Explorers Club (London) Ltd (‘TEC(London)’), which permitted TEC(London) to utilise the charity’s premises at 1 Greek Street for the operation of a private members’ club and the collection of membership fees. The fees generated from this licence were intended to provide income for the charity, thus enabling its continued operation.

Fraud Investigation and Regulatory Concerns

Recently, the regulator received a serious incident report indicating that the charity has fallen victim to fraud, particularly related to a loan that has been secured against its property at 1 Greek Street. The charity disputes the repayment status of this loan, which has not been settled, leading the creditor to initiate recovery actions. The Commission has expressed apprehension regarding the safety of the charity’s primary asset—the property at 1 Greek Street.

In response to these developments, the regulator is launching an inquiry to ascertain the circumstances surrounding these issues and to scrutinise the financial arrangements and decision-making processes associated with the charity.

Focus of the Inquiry

The inquiry will investigate various aspects of the charity’s administration, governance, and management, including:

• Whether the charity’s property is at risk.
• The adequacy of the governance arrangements, particularly concerning the management and oversight of the licence agreement with The Explorers Club (London).
• The decision-making processes regarding the charity’s financial arrangements, including loans.

The scope of the inquiry may be expanded should additional regulatory concerns arise during the investigation.

Upon completion of the inquiry, it is the Commission’s policy to publish a report detailing the issues examined, the actions taken, and the outcomes of the inquiry.

About the Charity Commission

The Charity Commission serves as the independent, non-ministerial government department responsible for the registration and regulation of charities in England and Wales. Its goal is to function as a proficient regulator that is fair, balanced, and independent, thereby fostering an environment where charities can thrive. This ambition is aimed at enhancing public trust in charities and supporting their essential role in improving lives and bolstering society.

On 29 October 2026, the Charity Commission initiated a statutory inquiry under section 46 of the Charities Act 2011 due to significant regulatory concerns regarding the charity’s assets.

A statutory inquiry empowers the Commission to formally investigate regulatory concerns within a charity and to exercise protective powers for the benefit of the charity, its beneficiaries, assets, or reputation.

The Commission also provides guidance to charities regarding the procedures that follow the opening of an inquiry.