1. What is driving the DNR option to release the capital asset
“Do Not Resuscitate”
What is driving the DNR option to release the capital asset
DNR Group's Findings

2. Drivers Govt. push for greater efficiencies in the sector
Regulator push for managing assets effectively
Need to raise money to support development
Need to raise money to cope with impact of Govt. announcements i.e. 1% rent reduction, welfare changes
Want to be more ‘commercial’ in approach
If don’t have financial imperative – Is just carrying on in the same way acceptable?
DNR Group's Findings

3. What needs to be considered?
Financial Factors
Social Factors
DNR Group's Findings

4. Financial Value Factors
NPV performance of each asset
Planned expenditure over 30 years (including energy performance)
Day to day expenditure
Rental Income
Service charge recovery
Void Period
Open market Value
DNR Group's Findings

5. Social Value Factors
Concentration of Stock - Is the unit in a block or street with other RP owned tenanted units?
Is the unit family sized?
Is the rest of the property tenanted?
House, Flat with own front door or shared
If in a block what floor is it on? Is there a lift?
Decorative order
Garden
Central heating
Desirable Features
Location popularity
Flood risk area
Location of Services (transport /green spaces)
Planned Regeneration
Geographical relevance
Long term demand
Management challenges
(Case study – Street Properties – Hexagon HA)
DNR Group's Findings

6. Alternative Options Remodel Redevelop Change tenure Refurbish
(Case Study – Sheltered Housing Block – FFT)
DNR Group's Findings

7. Information and Process is Key
Does the sector have the information required to take a more sophisticated approach to asset management?
What tools are available to assist? (Case Study- SDS Stock Profiler - Sovereign)
To minimise void periods during decision making – System has to be simple ‘
Option Appraisal approach – Financials overlaid with social considerations.
Final decision will be made in the context of organisational objectives
DNR Group's Findings

8. What else should the group consider?
DNR Group's Findings