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THE ABUDI HOUSE

Solving the housing crisis

The Problem

The Problem

  • The housing market is broken
  • Unaffordable homes
  • Failure of Council Regeneration to deliver new Social rent homes
  • Slow delivery
  • Missed targets -300k homes per year (100k in 2010) means 1m permits a year
  • Cumulative effect
  • Residents supportive of housing but not at any cost

  • The Developer paradox
  • Slow build raises profits
  • Spinning land makes money
  • UK Off-Site construction

The Current Solution

  • Massive subsidies from Government
  • Help to buy
  • Housing grant
  • Tighter planning rules
  • Council DevCo's
  • Not delivering
  • Cannot afford to employ from the industry
  • Massive risk for the local authority
  • Capital intensive with only long term returns
  • No evidence they can deliver at speed and at a price point

The Challenge

How do we provide a total solution that:

  • Builds homes at speed
  • Utilises the huge amount of publicly owned land
  • Allows risk free development for public bodies
  • Produces homes at significantly lower values than the current market
  • Significantly exceeds the amount of affordable homes
  • Offers a housing regeneration model

The Abudi Solution

Total Housing

Bring together a housing solution and financial model into a single package

  • Public authority provides land for term of project. Ownership not transferred.
  • No finance or grant required.
  • No financial risk for the PB.
  • Utilising an advanced Modular solution, The Abudi House achieve planning & deliver housing as agreed with the PB
  • At Practical Completion the Authority will take delivery of the development.
  • Authority pays an annual charge for the housing for the term determined by the project - usually 30 years
  • At end of term land reverts to PB and homes transferred to them.

The Abudi House

  • Homes are built in a state of the art facility in the UAE
  • Constructed to meet all regulatory requirements in the UK including NHBC warranty and BOPAS
  • Precision manufacturing minimising material and labour shortages
  • High quality finishes and PassivHaus standards
  • Shipped from factory to site by single company with interiors fitted-out for plug'n'play
  • Groundworks executed in tandem to manufacturing

The Abudi House Community

All homes completed

Site handover

First payment made

First home completed

Planning granted, homes ordered and groundworks started

Architecture and financial model agreed. Move to contract agreement and planning

Authority identifies piece of land and signs MOU

17

7

12

3

1

From "Go" to Delivery

The Financial Solution

You decide the parameters

  • How many - density (policy) and design mixture
  • Mix - houses and apartments ratio
  • Accommodation schedule - based on policy
  • Market rent
  • Affordable levels and market discount - contract term supports selection
  • Calculator gives annual lease cost, term and options for body to maximise profits for the Public Body

You can adjust these figures to get the best mix for the authority

Development overview - Trial

Number of homes on proposed development: 250

Desired ratio of Apartments to Townhouses:

Apartments: 65%

Townhouses: 35%

Affordable levels and Discounts

Number

London Plan policy is 50% but model allows you to go over this, even to 100%

Affordable rent

  • Affordable 20% discount
  • London Living 40% discount
  • Social rent 60% discount

Income and Expenditure

Based on a 30 year contract - the level of affordable, social rents or profit would increase with longer terms.

Rent to Profit Matrix

Based on the 30 year term example

Financial Summary

  • 254 Homes
  • 40% Townhouses
  • 50% Affordable homes
  • Affordable @ 50% discount from market - Social rents
  • £996k per annum surplus for spending on other activities
  • No financial risk of development
  • Still own the land
  • Homes owned by Public body in 30 years

The Abudi House Team

The Abudi House Partners

This is a joint venture partnership between ALEC (a UAE based construction company) and CNM Estates (a UK based development company)

CNMOD - UK Developer

CNMOD have a strong regional focus meaning that we’re well-positioned to find and create new opportunities in under-served areas. We work collaboratively with local government, businesses and community organisations so that we can realise potential and value through strategic development and regeneration, creating new areas that really work for the communities they are designed for.

ALEC - UAE Construction

ALEC is part of the Investment Corporation of Dubai (ICD). It is a large construction company with related businesses operating in the Middle East and with a presence in Africa. ALEC has consistently evolved and grown over the last 20 years to become a trusted partner for the execution of complex and iconic construction projects. The company builds and provides construction solutions to exceed our clients’ expectations for quality, safety, functionality, and aesthetics.

ALEC has extensive experience in complex projects across diverse sectors including airports, retail, hotels & resorts, high-rise buildings, themed projects as well as construction management, design management, estimating, cost planning and procurement.

Crane Logistics

Identifying a gap in the market for a client focused, innovative company that works in true partnership with its clients, Crane Worldwide Logistics opened its doors and our growth journey continues side by side our international clients.

When Crane Worldwide Logistics was formed in 2008, we were convinced that knowledgeable, dedicated and enthusiastic people coupled with game-changing technology would transform the industry. Our business was founded on five core principles, our people, account management, technology, compliance and quality and service execution.

Alexander Mac - Project Management

Alexander Mac is a full service Development, Project and Facilities Management Consultancy company. Our clients make significant investments in building assets. They want reduced risk, timely and cost-efficient asset delivery and optimised investment returns. Our services improve investment value via active engagement across the entire lifecycle of our clients building assets. At Alexander Mac we believe client support for building asset development, execution and operations can be done better.

Ed Morgan - UK On-site Construction

As Delivery Director to appoint contractors and support and advise our Development Managers on the delivery aspects of all our projects.

He has over 30 years’ experience delivering schemes in virtually every sector including education, student accommodation, heritage, sports, defence, and transportation.

He is a previous Managing Director for Mansell Plc’s London and Northern operations, as well as the Managing Director of the London Divisional Business Unit of Balfour Beatty Plc

Simon Guest - Land Acquisition

Simon works on identifying suitable sites and working with development managers and financial teams in creating a compelling offer for the Public Body.

Simon is the former land Director of UK based companies Barratt, Taylor Woodrow and Trafalgar House.

SUMMARY

Summary of the Proposal

  • Risk free delivery of homes
  • High levels of affordable
  • High levels of social rent homes
  • Decisions on mixes are yours
  • Fast delivery
  • No subsidy or grant required
  • Land remains your own
  • Mix of housing determines the size of the surplus
  • 30 year rent payable on homes
  • At end of term homes are handed over

Next Steps

  • Identify a piece of land
  • The Abudi House will undertake an assessment and return in 60 days with a design and financial appraisal
  • The appraisal will also include documents for committee and a draft contract
  • On approval through the PBs internal processes the parties will sign a Subject to Planning contract
  • On approval by the PB The Abudi House will undertake the planning application

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