Building Works - empty homes for employment

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Building Works provides a property redevelopment service to private property owners that creates training and employment opportunities and puts empty homes back into good use. Building Works aims to redistribute and recycle capital and income to benefit multiple stakeholders.

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Building Works - empty homes for employment

  1. 1. November 2010 Empty Homes as Training and Employment Opportunities Put empty homes back into use. Provide training and employment opportunities to people from excluded and disadvantaged groups. Reduce blight in our neighbourhoods. Partnership working with private property owners. Viable, scalable, replicable business model where participants are fairly paid. Financial returns to investors and re-invests surpluses in future projects.
  2. 2. November 2010 Property Owner (the “Owner”) enters into a Joint Venture Agreement with Building Works (the “Developer”). The Owner contributes its empty home and the Developer will be responsible for developing the property. Joint Venture Agreement Property Owner Building Works The Approach
  3. 3. November 2010 The Owner's initial contribution is valued as the property's value in its current state and use. The Developer's initial contribution is valued as the development contract value (the estimated construction and refurbishment cost). Joint Venture Agreement Owner Developer The Approach
  4. 4. November 2010 The empty home becomes a training and employment opportunity. Building Works raises finance for the development work and works with a Social Firm that provides training and employment in the building and construction trade. The Social Firm may raise its own grants to fund the training element of their programmes. Building Works Social Firm Investors Funders The Approach
  5. 5. November 2010 The completed home is sold at its Developed Value on the market. Build Cost Site Cost Developed Value Sold Model
  6. 6. November 2010 The completed home is sold at its Developed Value on the market. The proceeds are distributed to the Owner and Developer. Sold Model Repay Site Cost to Owner Repay Costs to Developer Owner's share Developer's share Net Proceeds Build Cost Site Cost
  7. 7. November 2010 The completed home is sold at its Developed Value on the market. The proceeds are distributed to the Owner and Developer. The Developer pays a return to its investors and re-invests the remainder in future empty home redevelopments. Completed homes could be sold to registered social landlords. Sold Model Repay Site Cost to Owner Repay Costs to Developer Return to Investors Build Cost Site Cost Re-invested in future projects
  8. 8. November 2010 Alternatively, the completed home could be rented at market rents. Build Cost Site Cost Developed Value Rented Model Monthly Rent
  9. 9. November 2010 Alternatively, the completed home could be rented at market rents. The Owner and Developer share the rental income. The Developer's share would provide a return to investors and may part-fund future projects. Build Cost Site Cost Developed Value Rented Model Monthly Rent
  10. 10. November 2010 Property Owner Building Works Social Firm Motivations
  11. 11. November 2010 Property Owner Building Works Social Firm Motivations ● Completed, habitable home is easier to sell than an empty, disused home ● Development costs borne by someone else ● Can participate in surplus or future rental income
  12. 12. November 2010 Property Owner Building Works Social Firm Motivations ● Employment opportunities for beneficiaries ● Access to additional income streams via Developer ● Completed, habitable home is easier to sell than an empty, disused home ● Development costs borne by someone else ● Can participate in surplus or future rental income
  13. 13. November 2010 Property Owner Building Works Social Firm Motivations PAID + RE-INVESTED SURPLUS ● Completed, habitable home is easier to sell ● Development costs borne by someone else ● Can participate in surplus or future rental income ● Employment opportunities for beneficiaries ● Access to additional income streams via Developer ● Remunerated through development fees ● Share in surplus or future rental income ● Portion of surplus re-invested in future developments
  14. 14. November 2010 Outcomes Empty home put back into use, reduces blight
  15. 15. November 2010 Outcomes Empty home put back into use, reduces blight Training and employment opportunities for beneficiaries of social firms
  16. 16. November 2010 Social Firm Property Owner Outcomes Increased awareness by private sector participants of social enterprise alternatives Empty home put back into use, reduces blight Training and employment opportunities for beneficiaries of social firms
  17. 17. November 2010 Social Firm Property Owner Outcomes Increased awareness by private sector participants of social enterprise alternatives Empty home put back into use, reduces blight Training and employment opportunities for beneficiaries of social firms Viable, scalable, replicable business model and financial returns for investors, fairly paid developer and social firms

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