The business model at a glance

▪ The overarching purpose of Ecos Living is to partner with LA’s  to develop and deliver high quality, genuinely affordable  housing to meet housing needs and help reduce LA  expenditure on temporary & emergency accommodation.  

▪ The partnership approach is underpinned by principles of mutuality including:  

▪ clarity in objectives and expectations of both parties;  

▪ realistic and sustainable financial structures;  

▪ fair distribution of benefits;  

▪ fair allocation of reward and risk;  

▪ capacity to adjust to external changes;  

▪ clear mechanisms for regulation and arbitration.  

▪ The Ecos Living approach is to utilise an inflation-linked annual income set at central government Local Housing Allowance  (LHA) rates as an assured income. This income may be  supplemented by local Council expenditure on temporary  accommodation where appropriate. 

▪ The model is based on an assured income for an Institutional  Investor, whereby the Institutional Investor would fund and /or  acquire the development in exchange for a long term lease  from the LA. We already have in-principle interest in and  support for the model from blue-chip institutional investors..

▪ A key attraction of our model to LA’s is the sale of an option on the freehold interest Day One, so that the LA owns an appreciating asset on its balance sheet. which offsets the lease liability. 

▪ The LA wrapper on a 40 year lease or similar has the ability to  generate a viable yield, creating a capital value that we believe can  compete with private residential sales (with a level of affordable  housing) in a significant number of Boroughs. 

▪ Ecos Living has targeted a substantial number of viable sites where  there is Ecos Living control or ownership or the site can be acquired  in short time frame. 

▪ Ecos Living proposes to earmark a proportion of profits for  reinvestment in meeting housing needs as part of its broader CSR  Charter