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.

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. 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. 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. 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. November 2010
The completed home is sold at its Developed Value on the market.
Build Cost
Site Cost Developed Value
Sold Model

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. 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. November 2010
Alternatively, the completed home could be rented at market rents.
Build Cost
Site Cost Developed Value
Rented Model
Monthly
Rent

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. November 2010
Property
Owner
Building
Works
Social
Firm
Motivations

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. 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. 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. November 2010
Outcomes
Empty home put back into use,
reduces blight

15. November 2010
Outcomes
Empty home put back into use,
reduces blight
Training and employment
opportunities for beneficiaries of
social firms

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. 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