Social REIT fundamentals exposed as the Internet of Emotions and Social Action. Superior to IOT

1. (c) Darindranath Gunesekera 2015
Dr DARIN GUNESEKERA
Of
Capital Markets for the Marginalized (CMM)Inc.
presents
“Bringing The Capital
Markets
Home to the
People”:
The Social
Real Estate
Investment
Trust
(SREIT)
1

2. (c) Darindranath Gunesekera 2015
 Vox Populi Vox Media
 We Need Homes They need Homes
 We Need Better Cities They need Better Cities
 We Need Livelihoods They need Livelihoods
 Politicians’ Thunder
 WE WILL GIVE YOU HOMES
 WE WILL GIVE YOU BETTER CITIES
 WE WILL GIVE YOU JOBS
2
The Most Visible Global Urban Problem

3. Slums:
Upwardly Mobile
Migrants
“”””’”Stuck”
Between
Villages and Cities

4. (c) CMM 2014 4(c) CMM 2006 9

5. (c) Darindranath Gunesekera 2015
The Capital Market is not Working
We Need A Stock Exchange for These Needs
Start with HOMES
Look at all elements of the process with the best standards agreed upon as Socially
Desired
Then find the Financial Solution
5
THE INSIGHT - SEE & DO

6. (c) CMM 2014 6(c) CMM 2006 14
Key -Land Cycle Process.
First vacant or
acquired land (Trust 1) 1
Occupied Estates:
(Trust 2, 3 of Cycle 2)
2 3
Occupied Estates:
(Trust 4..7 of Cycle 3)
4 5 6 7
Land Cycle 1
Land Cycle 2
Land Cycle 3
– projects exchanges new units for vacant possession of old units
– New units must be more attractive to encourage the move
Slums occupy 600 sq ft ground cover/ unit; planned units only 110 sqft

7. (c) Darindranath Gunesekera 2015 7
TRUSTAuthority
Social
Housing
Resident
Land
Shares
Vacant
Possession
Shares
• Start with a compact city area re-development project plan
• Existing Social Housing residents approve the plan
• This facilitates a Trust market deal between the landowner
(Authority) and social housing residents.
• The deal is shown above
MY SOLUTION: THE SOCIAL REIT

8. (c) Darindranath Gunesekera 2015

(c) CMM 2006 8
TRUSTInvestors
Cash via
Investment
Banks
Shares*
* Includes right to ownership of a specific house / flat
SREIT 2

9. (c) Darindranath Gunesekera 2015

(c) CMM 2006 9
Trade via
Investment
Banks *
Shares
Investors
(Authority,
Individual,
Institutional)
On – going
STOCK EXCHANGE
Market:
EXCHANGE
EXCHANGE Regulates Information Flow
SREIT 3: A STOCK EXCHANGE

10. (c) CMM 2006
10
The People’s Stock Exchange

11. The People’s Stock Exchange
We come because We TRUST

12. The Result
675
675 apartments in first ever high rise
by slum dwellers, designed by the residents
4000
4000 people vacated and re-located

13. Financial Returns：Unlocking the Profit in the Land
Investment: SLRs600M (USD6M)
Outside Community Sales
(Financial Return):
SLRs1700M (USD17M)

15. (c) Darindranath Gunesekera 2015 (c) CMM 2006
15
Project Results
 BEFORE AFTER

16. Two actual pictures of Asian High Population Density
City Center areas.
There is a CHOICE!!
Which happens may depend on
Social Entrepreneur’s Ability
Not developer/contractor ability.

17. (c) Darindranath Gunesekera 2015
 Is the Mystery of the World
 - Stock Exchange Action?
 Or is there another DRIVER ?
 The “Social” in Social Entrepreneur ?
 This is the other Sphere
 Finance or Money enables a finite world of Exchange
 There is a Social Sphere without Money Exchange
 This is the world of Emotion
BEHIND the SOLUTION
17

18. (c) Darindranath Gunesekera 2015
 Scenario: People Community in Urban n’hood
 Needs: earnings, consuming, education, health traffic, homes,
spiritual, life style and entertainment
 Result: The Internet must provide a Mapping of the Community, its
households and its people with their needs and desires, into itself.
 The internet must inform and perform the routes and interactions of
the mapping.
IES
The Internet of Emotions & Social Acts
18

19. (c) Darindranath Gunesekera 2015
 The Social World has
 Empathy or Empathic actions (a flow concept)
 Trust (a stock concept)
 Future Enterprise will have BOTH (Business + Social )with NO trade offs (Social Not
Tradable with Business; Rights not for Sale.)
The Basics
19
Business Entrepreneur Social Entrepreneur
Market Forces Empathic (re)actions
Financial Capital (Congealed Profit) Trust (a social stock) (Congealed Empathy)
Commercial (Money) Action Social Action
Ever increasing Profit Social Good, Societal Balance
Freedom of trade Human Rights

20. Becoming a Social Entrepreneur: My Journey

24. (c) Darindranath Gunesekera 2015
 POVERTY - A Reality where one finds oneself and hopes it is a way station
 Social Poverty - Risky Living; Uncertainty; Stress
 Emotional Poverty - Alienation; Depression Cycles;
 IES
 Through Empathic action (reaction) and Trust build up
 Reduce, eliminate - Poverties above
 “Bring The People Home”
 To A decent status in the mainstream of socio-economic life
 To A step on the Property Ladder
 To A step on the financial asset ladder
WHAT IES MEANS
24

25. (c) Darindranath Gunesekera 2015
 You cannot Collapse IES to Money (No Money Equalizer)
 There are Two spheres or “internets” and they cannot be traded. Human Rights are in IES.
Commercial and IES are not tradable.
 Social Action is a dynamic. It works. Social Action is not Static.
 As IES is always in dynamics; there is no stable state solution.
 SO We do not think in terms as “Give them a Good Home”. As e.g.,
 in rural settings, the constant dynamic is people multiply
 in urban settings, the constant dynamic is cities rise and fall
 Instead when we say “Bring the People Home (to the Capital Market)”, this is dynamics
Only.
“Horseless Carriage” Mistakes
25

26. 总结
Summary
Social REIT is a technical breakthrough where the solution
is expressed in the standard capital market terms
for a technical concept.
The Trust objective is to re-plan the LAND to provide decent
quality housing and area development
for persons at low levels of income in growth areas.
It is NOT based on State spending but provides PROFIT
to the State & relieves it of welfare burdens.
It is based on regulated markets;
NO ROLE Required for Foreign Donors nor NGOs.
It depends on a Empathic Social Entrepreneur Catalyst & Doer.

27. (c) Darindranath Gunesekera 2015
 separate video
The Past and Present seen by independent video
production.(6 years later; long after project period; 5
years after full Condo hand over).
27