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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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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.
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
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
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
InvestorsFunders
The Approach
November 2010
The completed home is sold at its Developed Value on the market.
Build Cost
Site Cost Developed Value
Sold Model
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
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
November 2010
Alternatively, the completed home could be rented at market rents.
Build Cost
Site Cost Developed Value
Rented Model
Monthly Rent
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
November 2010
Property Owner
Building Works
Social Firm
Motivations
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
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
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
November 2010
Outcomes
Empty home put back into use, reduces blight
November 2010
Outcomes
Empty home put back into use, reduces blight
Training and employment opportunities for beneficiaries of social firms
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
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
