Policy paper

Coniuratio social housing association Parkstad Limburg

Policy paper

Social housing association Parkstad Limburg



January 2011

Policy paper

Coniuratio social housing association Parkstad Limburg

Colophon Document:





Title:

Policy paper Coniuratio Paper Master project REMD

Subjectcode: 7US15 Date: January 2011 Educational institute:

Eindhoven University of Technology

Faculty: Real Estate Management and Development Den Dolech 2 5612 AZ Eindhoven Postbus 5600 5600 MB Eindhoven Telefoon: 040-2475981 www.tue.nl Studentdata: Ruud Coppens ID number: 0617710







Lars van Doorn ID number: 0722064

Marianne Phernambucq ID number: 0724352

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Mentors:

Marco van der Spank ID number: 0615883 Dr. J.J.A.M. Smeets Drs. ir. M. I. K. Leussink



January 2011

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

Preface This paper contains the policy plan of our ‘virtual’ housing enterprise Coniuratio in Parkstad Limburg. Coniuratio operates in accordance with the Dutch public housing system; therefore, we conduct social as a private non-profit enterprise by primary shelter those in need. Coniuratio has been adapting to the changing environment and regulations. This gives us the opportunity to expand a good quality of life and develop social facilities for our tenants the next 10 years. Eindhoven, January, 2011,

Ruud Coppens Lars van Doorn Marianne Phernambucq Marco van der Spank

Preface

On behalf of the executive board,

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Coniuratio social housing association Parkstad Limburg



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Social apartments in Kerkrade

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Coniuratio social housing association Parkstad Limburg



January 2011

Contents 0. Introduction............................................................................................ 7 1. Parkstad Limburg.................................................................................... 9 2. History..................................................................................................... 11 3. Mission and Vision.................................................................................. 13 4. Internal analysis...................................................................................... 15

6. Research of housing market.................................................................... 23 7. SWOT and strategies............................................................................... 25 8. Competition analysis............................................................................... 29 9. Competitor analysis................................................................................ 31

Contents

5. External analysis...................................................................................... 19

10. Risk analysis.......................................................................................... 33 11. Financial feasibility................................................................................ 37 12. Stakeholders.......................................................................................... 41 13. Closing remarks.................................................................................... 45 14. Resources.............................................................................................. 47 Appendix..................................................................................................... 49

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Coniuratio social housing association Parkstad Limburg



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Board of executives of Coniuratio

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Coniuratio social housing association Parkstad Limburg



January 2011

0. Introduction Coniuratio

Introduction

In the Netherlands many people live in dwellings which are built and managed by housing associations. These housing associations are non-profit companies and need to provide affordable dwellings for people with lower income (till €33.000,- a year) and special groups. Coniuratio, a housing corporation which is active in Parkstad Limburg, will discuss its history, portfolio, mission, vision and strategies. After that the there will be looked after to the competitors, risks, financial feasibility and stakeholders. This paper gives a clear view of what Coniuratio stands for, and where it wants to go in the next 10 to 15 years. Parkstad Limburg is a difficult area because of the shrinking population which causes a high vacancy rate. Coniuratio will not only invest in dwellings, but also social real estate to increase the livability in Parkstad Limburg.

Figure 0.1 Set-up policy paper

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Social apartments in Kerkrade

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

Despite the still growing population in the Netherlands there are some areas which are already shrinking. These areas are South-Limburg, Northeast-Groningen, East-Gelderland and parts of Zeeland. A part of SouthLimburg contains the region Parkstad, formerly known as “Streekgewest Oostelijke Mijnstreek” (until 1999) and contains eight municipalities: Brunssum, Heerlen, Kerkrade, Landgraaf, Onderbanken, Simpelveld, Voerendaal and Nuth. Nuth was absent for eight years, but joint the formation again at 22 February 2010. Collaboration between these municipalties was needed to attract businesses and to provide new ways of employment. These municipalities now have around 255.000 residents and work together to improve the economical structure in the area. (Parkstad Limburg, 2010) The shrinking population in Parkstad Limburg affects the housing market within the area. This causes a decreasing demand on the space market. When this occurs, the demand function in the four quadrant model is moved to the left as shown in figure 1.2. The other quadrants will not change because of this affect. It is important to get equilibrium within the asset and space markets. To establish this, a rectangle must be made between all four quadrants. When the supply stays the same, it is not possible to make a rectangle as shown in figure 1.3 with the slim red line. The point R1 isthe level of rent incase the supply does not change and P1 is the price of the investors are willing to spend on real estate.

Figure 1.1: Population grows per municipality, 2007-2025 (CBS, 2008)

When adjusting the supply of the housing market is possible to establish equilibrium within this market. To decrease the supply the rent level will come to the point of R2, with this rent level investors are willing to invest some money in new construction. The price of these investments is indicated by P2 and the number of square meters new construction is shown by point C2. When new constructions are built the stock will be at a certain level Q2 to make the rectangle and keep the market in balance. The price of the rent level can’t continue to fall infinitely, so in the short term, interventions in the stock are needed. (Geltner & Miller, 2007) (Jennen & Moll, 2009)

Parkstad Limburg

1. Parkstad Limburg

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Future plans of Parkstad Limburg Parkstad Limburg has the lowest average dwelling price (€ 166.000 in 2008) of the Netherlands. The average rent for a dwelling in this area is € 540,- To improve the image of Parkstad, the housing market, the economy and attract new businesses and families, a plan is made. VROM (Ministerie van Volkshuisvesting, Ruimtelijke ordening en Milieubeheer) investigated that if Parkstad Limburg does not change the supply, the vacancy of dwellings will increase to 19% and the prices will drop with 16% between the years 2008 and 2040. In this plan of Parkstad Limburg the supply of dwellings will be reduced by demolishing 6.245 dwellings within a period of 10 years, according to the plan it will reduce the vacancy to 2%. Figure 1.2: Four Quadrant Model of Parkstad Limburg

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Figure 1.3: Four Quadrant Model of Parkstad Limburg adjusted to the future

The plan does not only consist of adjustments to dwellings, but also business areas, infrastructure and social real estate will need investments to ensure the future of Parkstad. Social real estate has no clear definition. A few examples of social real estate are schools, nursing homes, theatres, community centers, sport facilities and shelters. Taking care of the social real estate will increase the livability, by decreasing the vacancy level. (Parkstad Limburg, 2010)

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Coniuratio social housing association Parkstad Limburg



January 2011

2. History of housing association ‘Coniuratio’

The Dutch housing context The Dutch housing associations were founded at the end of the 19th century. Cities in this period were growing very hard due to the industrial revolution. A result of the heavy growth, the conditions of the housing market were very bad. These bad conditions motivated private individual organizations to invest in forms like public housing. In 1852 the first dwelling association was founded, after that more associations would follow. The most important moments of history has been placed in a timescale (figure 2.1). The timescale will be the guidance for the rest of Coniuratio’s historical overview.

Foundation of ‘Sint Barbara’ In the past, region Limburg was known for it’s mining industry. In the period between 1899 and 1965 the mining industry was booming. As a result of this industry there was a big supply and demand for dwellings near the mines. Because of the massive arrival of mineworkers, the housing conditions were very bad. By introducing the housing law in 1901 it was easier to built good houses for these workers because of the financial support of the government. This was the reason for the founding of housing association SintBarbara in 1910. In the beginning it was difficult to start of the bureaucratic problems, but after 1916 the production of new dwellings increased. After a short period of time the growth ended. WO II was a difficult period for Coniuratio, they could not meet to the demand of social dwellings. After 1945 the housing production was heavily subsidized by the government. The Rose committee came with an advice for the government in 1962. The main point in this advice was that the associations weren’t financially strong enough. Some rules like the bruterings operation changed with the aim to make the associations stronger.

History

Today’s characteristic nature of Coniuratio is based on decisions and events that were made and happened in the past. By being aware of the association’s history and by learning from the decisions that have been made in the past, Coniuratio will certainly make better decisions in the future. In consequence, the history contributes to unfolding the future plans.

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Figure 2.1: Timescale history

Policy paper

Coniuratio social housing association Parkstad Limburg

Merger of three associations to SOM Due to the rise in popularity of oil and gas as new natural resources, the mining industry in Limburg had a hard time in the 60s. As a result of this bad period, more and more mines were forced to close. In 1975 the last mine in the Eastern Mining Area was closed. Because of these closures, the unemployment number rose quickly in the 60s and 70s. The amount of residents decreased, as a result of the bad economic situation most of the ex-miners had to deal with. The number of vacant dwellings increased and to secure the financial continuity of Sint-Barbara and other housing associations, a merger between these associations was necessary. In 1977 Sint Barbara merged with two other associations to “SOM Housing Association”, with SOM standing for Streekgewest Oostelijke Mijnstreek.

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Deregulation and privatization As a result of the deregulation and privatization during the 1990s the independency of SOM had increased. In this period an operation called ‘bruteringsoperatie’ took place. In this operation the money owed to the housing associations and the money that the organizations owed to the State were settled at once. After this operation SOM was completely detached from financial governmental support. In 1998 Parkstad Limburg has been introduced as the new name for the cooperation between different municipalities in Limburg. This was also reason for SOM to change the name in Coniuratio, which is Latin for collaboration. It was important to follow the shared vision namely live and work together. (Smeets, 2007)



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Overview of dwelling growth When housing association Sint Barbara started in 1910 they had 23 dwellings, which was around the average of the housing associations back then. The next ten years the amount of dwelling more than doubled (59 dwellings), because of the large building possibilities after the First World War. Within the following fifty years the housing association was expanded until a portfolio of 1300 dwellings. The period 1970 until 1980 was a hard time because of the financial crisis, but by a fusion with two other housing associations the amount of dwellings was yet increased until 2500 dwellings. The next decades several little housing associations have been adopted so Coniuratio became one of the biggest housing associations of Parkstad Limburg with 8500 dwellings. The timeline of the amount of dwellings is shown in figure 2.2. The biggest amount of dwellings are located in Landgraaf and Kerkrade (70,7%). The complete portfolio is illustrated in appendix 1.

Figure 2.2: amount of dwellings in portfolio Coniuratio

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Coniuratio social housing association Parkstad Limburg



January 2011

3. Mission & Vision It’s important to have a mission and vision for the dicisions that have to be made in the future. There are some interpretation differences between mission and vision. Let’s make it clear that a mission stands for the workspace of our association, a vision will show our future per-spective. The mission forms and shapes the vision; both will be discussed below.

A superior aim is more than only one sentence or slogan, although it’s a well thought sentence that will summarize the true core of the organization. Therefore, Coniuratio’s superior aim is:

Mission The association Coniuratio has to accomplish the public housing tasks which are written in the BBSH. Coniuratio is a social housing association; the focus will be on social real estate in the future. The mission of Coniuratio will be:

Shared values – What for? Coniuratio’s shared values can be described in three subgroups namely; existing values, desired values and required values. The three subgroups will be discussed below.

“Developing and managing social real estate and dwellings with relatively high quality for lower income (till €33.000, - a year) and special groups to increase the livability of the area.”

Required values The core competences are the boundary conditions where Coniuratio has to deal with. These conditions are documented in de BBSH. The boundary conditions are written below. (VROM, 2005) - Housing of the primary target group - Guarantee the quality of the dwellings - Involving tenants in policy and control - Guarantee the financial continuity - Livability (since 1997) - Living and healthcare (since 2001)

Vision The development process of the vision is based on the four section model by Hans van der Loo (2007). This model contains four aspects; superior aim, shared values, risky aim and core competences. These four aspects form an integral overview of the vision. The four aspects will be discussed below. Superior aim - Why? According to the four section model, the superior aim included questions as ‘what is our right to exist?’ and ‘what’s the essence of our organization?’

Mission & Vision

The mission has an internal dimension namely developing and managing the real estate. But it also has an external dimension like increasing the livability of the area.

Taking care of the social housing and especially social real estate to increase the livability of the area.

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Desired values The values which can always be linked to Coniuratio are the existing values. Those values give you a clear vision of our organization.

Decrease vacancy to 3% in stead of 5% in the year 2025 to improve the livability, because vacancy and livability are strongly connected in Parkstad Limburg.

The values which aren’t a part of the organization yet can be described as the desired values. When the distance between the existing- and desired values are too big, the organization has a lot of work to do. - Proactive; doing nothing is going backwards, especially in a shrinking area. - Innovative; new solutions will provide new opportunities. - Result orientated; it’s important to preface the main goal. - Energetic; be quick and careful while implementing your plans.

This relation is confirmed by the local government in 2009 shown in figure 3.2. Because there are no data of the livability in 2010 regarding Parkstad Limburg (Leefbaarometer 2010), the check if the livability actually is increased as a result of the decreasing vacancy rate cannot yet be done. In figure 3.2 the declining of the vacancy rate in Parkstad between 2007 and 2009, is illustrated.

Existing values The values which can always be linked to Coniuratio are the existing values. Those values give you a clear vision of our organization.

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- Customizable; Coniuratio will treat you as an individual and small alternations in dwellings are possible. - Honestly and integrity; Coniuratio will always give an open and clear reflection of the decisions that had been made which are of interest for residents. - Services focus; Coniuratio will manage social real estate to improve the livability in the area. - Appropriate; Coniuratio will be aware of the efficiency of the available resources. Risky aim – Where shall we go to? Maybe the most important aim of the organization is the risky aim. The risky aim creates unity and motivation to the employees. But more importantly, it’s a goal that defines the maximize performance in period of 10 or 15 years. Coniuratio formulated the following risky aim:

Core-competences – In which we excel? There are some competences in Coniuratio’s organization in which we excels. These core competences are an important part of the vision. They made Coniuratio of todaysorganization. - Social orientated; the customers will be on the first place. - Reliable; always be open and clear to the customers. - Decisive; good planning and quick execution.

Figure 3.2: Vacancy as a function of Livability (VROM, 2009)

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Coniuratio social housing association Parkstad Limburg



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4. Internal Analysis

Organization As mentioned earlier, Coniuratio is a social real estate organization. Operating in a housing association means that the acquired benefits have to be reinvested in the community (non-profit). Coniuratio has and always will reinvest the benefits on an efficient and responsible way and has a reliable and clear image to the customers.

The organization structure As a result of the increase of the portfolio in the last years, the organization has become more professional. Organizations were used to do outsourcing; things like maintenance of housing, administration and contact with tenants were done by other organizations. A complex structure makes room for the traditional ‘tripod’. A back and front office, a financial department and a project department were integrated. A detailed chart is shown in figure 4.1. (Smeets, 2007)

Internal analysis

In this chapter the organization of the housing association Coniuratio will be described and the content of the portfolio will be shown. The internal analyze gives a clear view of the strengths and weaknesses of the organization itself and the portfolio of the organization. Some of these strengths and weaknesses will be used to produce strategies later on.

Coniuratio has not done many social real estate projects, but wants to increase the focus on social real estate in the region of Parkstad Limburg. The investments in social real estate should develop a better living environment for the residents of Parkstad. The financial crisis in combination with the shrinking character of Parkstad is a problem where we have to deal with, for example a higher unemployment, relative decline of income and a decrease of the dwelling value. It’s important to become and stay financially healthy in these difficult times. For solving these problems, operating in an advanced and result orientated way is very important. Coniuratio should search for new market combinations; innovation has an important role.

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Policy paper

Coniuratio social housing association Parkstad Limburg

Current portfolio Overview total portfolio The total number of properties owned by Coniuratio at the end of 2010 is 8.574 dwellings. Most of the dwellings are located in Kerkrade, Landgraaf and Simpelveld. For a more specific overview of the portfolio and a clear map of all the locations, see figure 4.2 and appendix 1.

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Coniuratio social housing association Parkstad Limburg

Dwellings divided by dwelling type Figure 4.3 gives the division of portfolio by dwelling type. Remarkable, Coniuratio has many single family as well as apartments. The number of senior dwellings is quite low although. Looking at the total market, the number of apartments is quite big.

Figure 4.3 Dwelling type

Dwellings divided by year of construction Figure 4.4 gives the division of portfolio by year of construction. The most of the dwellings are built between 1970 and 1979. This is not very strange because of the history. Also in the years after WO II, there was a big demand for new dwellings. The number of new dwellings in the recent years is very low. This can be described by the start of the shrinking in Parkstad.



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Dwellings divided by rental price The rental price distinguishes four categories; expensive to rebate limit, expensive above rebate limit, affordable and inexpensive. Most of the dwellings have an affordable rental price, as is shown in figure 4.5. The smallest part of the rental price is expensive, this is quite usual for a social housing association.

Figure 4.5 Rental price

Portfolio conditon Only a small part of the portfolio has an excellent condition, as is shown in figure 4.6. Most of the dwellings are in a moderate/well condition. This means that maintenance is needed but on the long term. However, the other 20% which is in a bad condition needs short term maintenance. Overall there is a lag in maintenance.

Internal analysis

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Figure 4.4 year of construction

Figure 4.6 Conditions

Policy paper

Coniuratio social housing association Parkstad Limburg

Overview strengths and weaknesses Coniuratio has several strengths and weaknesses (table 4.7) which will be useful in the SWOT-analyses to create new strategies for the company. The analyses and strategies will be explained and formulated in later chapters, first an external analyses of the Parkstad region is necessary.

Table 4.7 Strengths and weaknesses

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Coniuratio social housing association Parkstad Limburg



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5. External Analysis

Demographical Demographically, Parkstad is approximately 20 years ahead of the rest of the Netherlands. This means that it can in the future be used as a good reference for things to happen anywhere else. The region is known for its excessive graying in the last couple of decades. In 2006 one out offour persons is older than 65. Prognoses made by the CBS indicate that this ratio will shift to 1:3 persons in 2025. The other age groups indicated by the CBS (youths up to 20 year and the productive working age, 20-60 years), both show a big decrease in the next 15 years. This shows that besides the graying there’s also a steep decline in population in the coming decades. Especially the young educated people move away. Since 1997 there has been a population decline in Parkstad, with 0,5 to 1,0% per year. It is expected that in the period 2006-2025 the population will decline by a total of 30.000 inhabitants. (CBS, 2010) Economical In the first half of the 20st century the entire region Parkstad was one of the most prosperous of the Netherlands. This was due to the frequent mining at that time. However, because of the strong rise of oil and gas around 1960, more mines were forced to close.

Due to the closure of these mines there was a significant drop in employment in the 1970s and because of this, prosperity decreased. In the 1980s heavy and non-commercial industries were alternatives for the unemployed lower-class. But late 20th century these branches had hard time either, mainly due to the transfer of work to 3rd world countries. The current employment rate is one of the lowest in the Netherlands and the educational level is very low. Also, the number of beneficiaries is very high in the municipal of Heerlen (which roughly embraces Parkstad). The long-term perspectives don’t seem to make any change in this matter. (CBS, 2010) However, since 2005 economical impulses have been initiated to ensure that the south of Limburg, again, can compete with other nearby regions. The main focus of these impulses will be innovation and technology. What positive effect this will have on the region Parkstad is yet unknown. (Parkstad Limburg, 2010)

External analysis

DESSTEP is a method to analyze the external aspects of a corporation and stands for: Demographic, Economic, Social, Spatial, Technological, Ecological and Political. The DESSTEP gives a clear image of the external factors that might influence our business plan in the upcoming 10-20 years. Purpose of this analyze method is to gather relevant information about these factors and use it to formulate threats and opportunities which serve as input for the SWOT analysis in the next chapter.

The last economic issue are the energy costs. The costs had been increasing very hard in comparing with the other costs of the tennants the last years. The expectations are that these costs will keep increasing and may transcend the rentprice in the future. (overview appendix 2) Social/ Cultural In Parkstad Limburg there isn’t a clear regional profile. They have failed to develop a new identity after closing the mines. Parkstad Limburg is collaborating together since 2007 in a strategic alliance with its border region Stadteregion Aachen. The number of people in this region is as large as South Limburg. This region characterized itself with lots of cultural heritage values.

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Parkstad Limburg has a complex social structure. The inhabitants of cities prefer privacy in small social communities. In history large scaled urban developments have been counteracted. Nowadays, this results in a large variety of mostly good quality living environments. Parkstad tries to combine the cultural diversity and high quality professional art forms with its image as a network region. The city of Heerlen has the biggest concentration of traditional regional arts and cultural expressions. (Parkstad Limburg, 2008) Spatial / Geographical Parkstad Limburg is a border region and a backside area in the South-East of the Netherlands. The land is fragmented and has an unclear structure. Besides the unclear structure, Parkstad has moderate accessibilities that influence the traffic flow.

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Technological The business area situated just over the border with Germany, ‘Avantis’, is becoming a central connection between two new regional developments. Avantis identity is new energy. This identity could be the new face of the whole region. This border area becomes a medical, infrastructure, educational, entrepreneurial and business technology meeting point. One of the ambitions is to develop a cardiovascular center of excellence for two academic hospitals; RWTH/Klinikum in Aachen and AZM in Maastricht. (Avantis, 2010) The collaboration between Parkstad Limburg and the border region ‘Stadteregion’ Aachen could be very positive for the technological developments of Parkstad. This region is famous because of its well known technological university (RWTH) with 30.000 students. The number of annual graduates is bigger than the total number of graduates in the Netherlands.



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Ecological Parkstad takes good care of the environment, and most of the time the environment is more important than economic profit. In some cases an exception needs to be made, like improving the infrastructure. The infrastructure until now was created by natural routes within the region, because mobility becomes more and more important, a transformation needs to take place. By increasing the accessibility in Parkstad, more companies will settle in this area so the employment will increase, ultimately this will help to avoid shrinking of the number of residents. To improve the livability in Parkstad, the environment needs to be maintained, both inside and outside the village or city. The amount of green landscape will be expanded as much as possible. This can be done by demolishing old vacant real estate. (Parkstad Limburg, 2008) New energy and durability are the main focus in Parkstad; Campus Avantis (Business Park which is located in Holland and Germany, between Heerlen and Aachen) is created to develop this new energy and sustainable products. (BTM, 2010) Political The government has recognized the problems of a shrinking population and made a plan to maintain or even increase the livability of Parkstad to keep the residents and attract new residents in the future. One of the main points of the plan is to establish balance in the housing market and prevent a high number of decay and vacancy. The government will provide permits faster, but the housing associations and public sector need to pay demolishment and operating losses which are necessary to create a balance in the housing market. Other main points are to improve the infrastructure in Parkstad and increase the livability of the area by developing new green areas.

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External analysis

The costs of this plan will be a few hundred million euro or even more and around 20% of these costs are lost investments, but need to be done to save Parkstad. The plan is already in progress and will take many years to complete. Because of the crises and austerity plans as well nationally as European is the position of different grants unsafe. (OB Parkstad, 2010)

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Table 5.1 Opportunities and Threats

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Social apartments in Heerlen

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Before all the external factors from the DESSTEP analyze method can be determined, a closer look at the housing stock and the market demands is required, to give more insight in how they interface with each other. Housing stock A logical trend in the last couple of years is that the rental housing stock is decreasing, especially in the inexpensive price range. In the occupied market there’s also a decrease in selling price, but this decrease is relatively small in the lower segment (appendix 3). Other developments which are important to be noted is the strong decrease of transactions in the occupied market the last years and the strong increase of sales time in the occupied market. Most important is the current vacancy level which is very high compared to the rest of the Netherlands: 4,4%. (Vaessens & Ven, 2009) Market demands The majority of home-seekers say they are opting for rented accommodation as there next home. Besides this increased demand in possible tenants, 23% of the current tenants want to pay more for their future to be home; 58% wants to stay in the same price range. Apartments without elevators are decreasing in popularity. As a result of that, apartments with elevators continue to increase in popularity, as are (semi-)detached homes. There’s also a surprising high demand to housings build in the 1930s. As for the elderly, life-resistant housing is by far the most popular living choice. Because of this trend, the residential care homes are decreasing in popularity. They also have a strong tendency to rent in the future, and for the location healthcare and cultural facilities are the most important factors. The building year isn’t a big issue for most house hunters. If it is, the preference goes to a newer home. More important is the condition of the property, this should be good for most home-seekers.

In absolute terms, Heerlen is the most popular place to reside, followed by Landgraaf, Kerkrade and Brunssum. However, in percentage terms, the three rural municipals are the most popular. Safety is the most important reason for the living location, followed by shopping facilities. Nearby healthcare facilities is also an important factor in the choice of a new home, especially underneath the elderly group (65+). Most home-seekers live in Heerlen (46%), followed by Kerkrade (21%), Landgraaf (13%) and Brunssum (11%). (Pas & Pas, 2009)

Research of housing market

6. Research of housing market

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7. SWOT & Strategies

The strengths are characteristics of the organization that give it an advantage over others in the region. Weaknesses are characteristics that place the organization at a disadvantage relative to others. External elements in the environment that could cause trouble for the business are represented in the opportunities. At final are the threats described. The threats are the external elements in the environment that could cause trouble for the corporation. Figure 7.1: Framework strategies

The SWOT-figure on page 28 shows a clear view of the links between external en internal elements. Most striking combinations are used to prepare the main business strategy in the next chapter. Core strategies First of all there will be given some sort of framework for our strategies (figure 7.1). As already described the region where Coniuratio is operating in is a shrinking area. The shrinking is a fact and the decrease of households is connected with this fact. All the strategies that will be developed have to deal with the shrinking and the decrease of households. This means that demolishing or selling will be inevitable. Also the social facilities will be the mean purpose in the development of the different strategies. Demolish choices have to be made by Coniuratio. A lot of issues are involved with demolishing. The first important thing to look after is the lifetime of the dwellings. The dwelling must be at the end of the economic and functional lifetime before demolishing the dwelling. The second thing is that Coniuratio wants to demolish in dilution areas, hereby you can not break the current structure and identity of the neighborhood.

There are important social aspects to look after. Coniuratio wants involve their tenants closely by important choices. Coniuratio realizes that some social problems regards the demolishing task will come but the intention is to keep the tenants content. Coniuratio is a social housing association, social facilities will be central in our vision. Coniuratio will create a facility cluster to secure the facility level for the coming 10 years. The facilities will refer to our main target groups. Social facilities, health and care facilities are the main facility options. Indoor provisions and space for culture activities will be an practical example for us as social housing association.

SWOT & Strategies

The SWOT-analysis is necessary to compose a well considered business strategy. This strategic planning method helps evaluating the Strengths, Weaknesses, Opportunities, and Threats involved in a corporation venture.

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Graying as an opportunity Graying is often seen as a negative phenomenon, but it has also its benefits. In this strategy graying will be seen as a chance. The increase of elder people in the next years will become a large new important group to be reckoned with. Research has shown that people will become older in general. New techniques in ‘Domotica’ makes it easier for them to stay longer in their current dwelling. The presence of hospitals, recreation areas and shopping areas will have a positive influence on this growing population. The green environment near and in the cities will be pleasant for the elderly. The current offerings are not enough to attract and keep them in Parkstad. New facilities and dwellings for this growing group can be (re)developed and will create a better environment.

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Innovation and sustainability Coniuratio is an innovative organization which is always searching and interested in new developments. Parkstad has some unique opportunities, i.e. most ours of sun in the Netherlands, and it’s an attractive region for companies specialized in renewable energy, mainly due to its convenient location. These things can be important in changing the portfolio into a more sustainable portfolio. It gives Coniuratio also the chance to pursue a more distinctive profile. With this knowledge Coniuratio can respond to the rising energy costs. Dwellings in a poor condition will eventually cost more on energy than the tenants can afford. The use of sustainable energy can have a positive influence in the long term. To serve Coniuratio’s target groups, the rental prices or the energy costs need to be reduced. This will give a positive effect on the quality of the dwellings and will satisfy Coniuratio’s tenants. Other new facilities in waste separation or recycling can have contributions to sustainability as well.



January 2011

Collaboration at different levels More organizations and public associations have to deal with the same problems as Coniuratio, especially in a shrinking region like Parkstad. Solving these kinds of problems is usually much easier in a team than by in your own. Parkstad itself is already an important step in collaborating on a regional level but it is even more important for different organizations to follow this trend and collaborate on different levels so new opportunities arise. The opportunities are plenty: Parkstad can serve as a network “city”, in the ELAt region, and the convenient location at the border with Germany areexamples of these opportunities. The collaboration at different levels can lead to new product market combinations; foreigners from Germany and Belgium for example. Social facilities for these new groups have to be examined, so Coniuratio can effectively respond to their demands. Another positive effect on the economy of Parkstad can be the development of the neighboring economies, i.e. Aachen, Maastricht, Liège and maybe even Eindhoven. Review of the portfolio It’s important to match the portfolio with the current market changes and anticipate on future ones. Reviewing and fine tuning the current portfolio to the market gives opportunities for the livability. Trends like; the increasing popularity of renting, the population decline and decrease in popularity of apartments, are issues which much be kept in mind. If we examine these trends precisely and reflect them on Coniuratio’s current dwellings orts and types, it creates a more accurate picture which steps to take with the current portfolio.

Coniuratio social housing association Parkstad Limburg

Financial strategie Coniuratio wants to stay financial healthy in the future. Financial funds will be released to finance the large developments. Sales of some of our rental dwellings will be an option. Coniuratio will sell their dwellings with a discount of 20%. Tenants gets the opportunity to buy their own occupied dwelling. If there will be a financial gap at the end, Coniuratio won’t cut in the first place in the investments in the social facilities. Cutting in other social expenditures is also a option.



January 2011

SWOT & Strategies

Policy paper

27

S2

Customizable

S3

Innovative

P S4

Large part senior/care

S5

Large part single family

S6

1/4 reached limit 50 years

S7

Large middle segment

O W1 Region dependable

o

o

++ + + + + ++ ++ ++ + + + + +

+ o

+

+ ++ ++ + ++ + ++ ++ +

+ o

+ +

o

W5 Large part moderate condition Weakness

28

Strategie 1

Figure 7.2: Matrix Collaboration at different levels Strategie 2 Graying as an Opportunity Strategie 3 Innovation & Sustainability Strategie 4 Review of the Portfolio

o

+

+ +

+ + o

+ o ++

-

+ o

o o -

---

-

o + + - - -+

o

-

-

o o o -- -- -- --

-

+ o

-

-

-

-

+

-

-

S2 S3 P S4

Pro collaboration Customizable Innovative

-

Economy based in commercial services

Parkstad; Networkcity

Oppertunities

Strength O S1

++ + + ++ +

Large part senior/care

S5

Large part single family

S6

1/4 reached limit 50 years

S7

Large middle segment

O W1 Region dependable

o

o

+ ++ +

+ +

W2 Too little focus on social facilities P W3 Large part apartments W4 Small part of new dwellings W5 Large part moderate condition Weakness Strategie 1 Collaboration at different levels Strategie 2 Graying as an Opportunity Strategie 3 Innovation & Sustainability

--

January 2011

T11

o

-



Threats

T10

-+

+ -

T9

Apartements without elevator decrease in popularity

--

o o -

T8

Administrative organizations counteracts innovation of regional thinking

o - --

o -

T7

Unsafe position grants

+

T6

Fragmentation and unclear structure

o

T5

Moderate accessibility

T4

One problem neighborhood

T3

No profiling

T2

Fragmentation both socially and culturally

T1

Population/demografic decline

X3

Decentralized location

Ageing (changing demografic)

Border region

Life resistant housing more popular, residential care homes less

X2

+ o

P W3 Large part apartments W4 Small part of new dwellings

Renting is getting more popular

++

o

W2 Too little focus on social facilities

Partnership Parkstad

O10 O11 O12 O13 O14 X1

Most hours of sun (Netherlands)

O9

Green qualities of the environment

O8

Cooperation with two academic hospitals

O7

Part of the ELAt-region

O6

Culture linked recreation attractions

O5

Attractive for companies in renewable energy

O4

Many retail/recreation attractions

Presence of good quality shopping area's

Economy based in commercial services

++ + + ++ +

O3

Young entrepreneurs aren't connected with existing business

Pro collaboration

O2

High unemployment

O S1

Parkstad; Networkcity

Strength

Oppertunities

O1

Coniuratio social housing association Parkstad Limburg

Cooperation with Aachen and it's technology

Policy paper

Strategie 4 Review of the Portfolio

o

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

In this chapter the negotiation power and threats of different parties Coniuratio has to work/deal with, will be described and analyzed, using Porter’s Five Forces Model (figure 8.1). This model uses four ‘pieces’ of input that eventually will lead to the amount of competitiveness that takes place within Coniuratio’s working space. Threat of New Entrants Bargaining Power of Suppliers

Rivalry among existing competitors

Bargaining Power of Buyers

Threat of Substitutes Figure 8.1: Porter’s Five Forces Model (Porter, 1979)

Negotiation power of suppliers In the case of Coniuratio, suppliers have an average negotiation power. For example the local government, which takes care of the issuance of land and the provision of permits. For the latter, they have an important role when it comes to new development plans, but due to the low land prices, issuance will not be the biggest obstacle. Other suppliers with a less dominant position at the negotiation table are the developers and contractors. Mainly because they operate in an aggressive market, especially in these tough economic times. When the complexity of the task increases, the negotiation power will improve for these suppliers. Important suppliers with a high negotiation power are the financial institutions that provide loans and mortgages. They have a key role in the start of a new project.

Coniuratio also has to deal with property managers and maintenance enterprises. These suppliers have a low negotiation power, due to the low amount of available work in Parkstad. In a list with all the suppliers, the parties that utilize the social facilities can’t be forgotten. They serve both as buyers and suppliers because they also have to supply the property with their specific products. In this case these parties (institutions/organizations) have an average negotiation power. Negotiation power of buyers Parkstad is a prime example of a clear buyers market. The supply is much bigger then the demand. Therefore, the tenants have high bargaining power. They have a large freedom of choice and this reflects their good position at the negotiation table. When it comes to the social real estate Coniuratio develops, the profit and non-profit organizations/institutions which will use these objects have an average negotiation power. The social real estate will largely be developed in coherence with these organizations. To make these projects a success, a healthy interaction has to take place between Coniuratio, who develops, and the organization/institution using it. Threat of substitutes The rental sector can be divided in private and commercial rental and rental through a housing association. The private and commercial sectors are not the biggest threats for Coniuratio’s business. As a housing association, Coniuratio has an advantage because it can keep its rental prices low, due to the social dwellings, especially in a buyers’ market like Parkstad. Furthermore, commercial associations (i.e. APB) can not achieve the desired yields in the Parkstad region. They will probably never operate in a shrinking region, but always in more prosperous ones. Another substitute product is the owneroccupied housing market and the private construction of new homes. In the region Parkstad the house prices are low, so it is an average threat for housing associations.

Competition analysis

8. Competition Analysis

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Policy paper

Coniuratio social housing association Parkstad Limburg

But the risk of buying a home is far larger than renting one, especially in an ‘unattractive’ region like Parkstad, where future prices will decrease for certain. The private construction of new homes, maybe in the near future the even cheaper “catalogue houses”, is also a big substitute threat. Land prices are very low so it is very attractive for people to build their own homes in Parkstad. Of course the same risks as buying a house apply here, but one of the main advantages is that the residents can adjust the building plans to their own tastes.In regard to the social facilities, the most important substitute ‘products’ are the healthcare, educational and social institutions Coniuratio tends to cooperate with. These institutions (and organizations) have the choice to become the initiator themselves, but it is (financially) safer to do this in partnership with, for example, a housing association. In this matter, the threat of different types of partners is nil, because of the risky investments that need to be made.

30

Threat of new entrants Due to the shrinking characteristics of the Parkstad region, the founding of new young housing associations are out of the question, also because of the high entry barriers to operate in this market (large investments, in compliance with BBSH). Associations that operate from another region/city, i.e. Belgium and German associations, will probably never have the intension to expand their business to Parkstad, because it will be hard to build up and maintain a financial healthy position on the market. The development and exploitation of social real estate is in general a privatized market. Newcomers to this market have to keep in mind that the investments are risky, but because of the need of certain types of social real estate, there will always be an average threat for new entrants.



January 2011

Threat of established rivalry The current threat of competitive housing associations is high. Because of the small demand and large supply, associations have to act very competitive. In the future, Coniuratio’s wants to become more distinctive then there competitors so prognoses are that this threat will be reduced to average. Social real estate is, obviously, present in Parkstad, but Coniuratio’s competitors have not focused on it at this moment. Of course this could change in the future, but for now the threat can be described as average. To make things more clear, all of the analysed values can be shown in table 8.2.

Table 8.2: Level of competition

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

9. Competitor Analyses In a competitive market it is important to know who the competitors are. The following questions are important to look after: What are their strengths and weaknesses and what are their objectives? In which direction are they going, or do they want to go? What are their strategies, and where does Coniuratio stand compared to the others?

5. Identification and choice of competitors

4. Objective s

3. Current strategy

Competitot analysis

The competitor analysis of Alsem (1991) (figure 9.1) clarifies which housing association is the biggest competitor and which association is not a direct rival for Coniuratio. Market definition

2. Objective s

1. Future behaviour Intern analysis

Own relative strengths and weaknesses

Figure 9.1: Competitor Analysis (Alsem, 1991)

There are seven associations in Parkstad who can be seen as a real competitor; Weller, Wonen Heuvelsteden, Hestia, Woningstichting Simpelveld, Wonen Zuid, Land van Rode (LVR) and Vesteda. These competitors in Parkstad Limburg are first analyzed on five aspects of business: the size, diversity of the portfolio, the commercial approach of each association, the attention to innovativeness and sustainability, and to what extent the development of social facilities are taken into account. These results are plotted in the spider charts, illustrated in figure 9.2.

31

Figure 9.2: Spider chart analysis of Coniuratio and its seven competitors.

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

As seen in table 9.3, Hestia and Wonen Zuid are the biggest competitors. They both have a lot of similarities with Coniuratio regarding the PMCs. Another competitor to keep in mind is Wonen Limburg and Woningstichting Simpelveld, particularly in the future, though the latter one is operating on a smaller scale.

Figure 9.2: Spider chart analysis of Coniuratio and its seven competitors.

To give a better comparison of the competitors’ portfolio, all of them are compared on rent price base. These graphs can be found in appendix 4. Finally a competitive overview in Product-Market-Combinations (PMCs) between Coniuratio and the competitors is shown in table 9.3. The competitiveness is divided in standard dwellings and social facilities. Also, an estimate is made for the present and the future.

32 High = same PMC’s Medium = particularly corresponding Low = different PMC’s Table 9.3: Competitors level for the current and future PMCs

Conclusions competitor analsyes Coniuratio has some competitors with very similar characteristics. When it comes to scale, Land van Rode and Woningstichting Simpelveld can be excluded as real competitors, even though they operate in a small area Coniuratio is also active. Vesteda’s portfolio focuses on the higher segment dwellings; therefore it is not a direct competitor of Coniuratio. The other associations, i.e. Weller, Wonen Limburg, Hestia and Wonen Zuid are the biggest competitors. In regard to the social facilties and its commercialism, three associations stand out as the closest rivals for Coniuratio: Weller, Hestia and Wonen Zuid. These three can, overall, be seen as the associations Coniuratio has to follow accurately in order to compete with them at a healthy level.

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

10. Risk Analysis

Risk Profile As made clear earlier, Coniuratio is a social housing association, with a focus on social facilities to improve the livability in its neighborhoods. It is obvious, they have good relations and many cooperating projects with several parties. In general, commercial developers operate on their own. But for Coniuratio collaboration with stakeholders is essential to develop their social facility projects in Parkstad.

The main focus of Coniuratio is not only financial profit. That is why the portfolio of Coniuratio has relatively more unprofitable projects compared to other associations. These kinds of aspects, like collaborating and unprofitable projects, influence Coniuratio’s risk-profile. To become a social real estate association, by developing more social facilities, Coniuratio has to accept more risks compared to a public housing association. Developing social facilities is more complex and diverse, unlike the more ‘standard’ developments of dwellings. The risk profile is shown in figure 10.1.

Risk analysis

Public utility housing enterprises are real estate intensive entrepreneurs which involves high risks when it comes to both management and development in different stages. In addition to the acceptance of risk, it sometimes can be reduced, delegated or eliminated to others. In this paragraph an overview will be stated of how Coniuratio deals with its risks. Furthermore, Coniuratio’s risk assessment will be discussed using a social facility cluster project as an example.

33

Figure 10.1: Risk Profile of Coniuratio

Policy paper

Coniuratio social housing association Parkstad Limburg

Risk Analysis of a future development A checklist (see appendix 5) is used to give an overall image of all the major risks involved in one of Coniuratio’s future developments. The risk aspects in the checklist are subdivided into spatial/physical, social, political/administrative, legal/procedural, financial/economical, quality and collaboration, which occur during different phases of the development process.



January 2011

The full analysis can be found in appendix 6, together with a more detailed description about the development plan itself, the working method and what the results will be. To decrease the biggest risks, cooperation with future stakeholders is one of the most important aspects. The response makes clear that there are risks that can’t be just accepted. This project will eventually strengthen Coniuratio’s position as a social real estate company in Parkstad. The project increases the livability of Coniuratio’s tenants; it adds something more than just a home for their customers. One of the more important conclusions is that when Coniuratio ends up in a poor financial state, these kind of projects can’t be started up and should be postponed or even cancelled. Risk and Yield total portfolio The total portfolio of Coniuratio is shown in a graph in figure 10.3. The current risks of all the (clusters of) dwellings are plotted against the total yields. The green and blue dots are the current clusters of dwellings within the portfolio. The green ones are the clusters that stand out in the whole graph and will be described below:

Figure 10.2: Overview of the social facility area in Terwinselen

34

The project which will be analyzed is a social facility cluster project in Terwinselen, Kerkrade (figure 10.2). The social facility cluster contains an elementary school, some healthcare facilities, a pharmacist, a medical support centre, a community centre for cultural activities and 800 m2 small-retail. Decided is to analyse this particular development plan, because it is a typical example of what the aim and strategy of Coniuratio will be in the (near) future.

1)

Apartments in Schaesberg, building year 1974, expensive: Expensive apartments but very attractive for citizens of Landgraaf and Heerlen.

2)

Most of the dwellings in Simpelveld. 30 years old but because of it good, quiet location very profitable for its age.

3)

Large cluster of senior apartments and single-family homes in the Kerkrade neighbourhood Terwinselen. Most of the dwellings are almost 30 years old but quiet attractive due to some healthcare facilities nearby.

Policy paper

Coniuratio social housing association Parkstad Limburg

4)

Large apartments in Dauwe Weien, Heerlen, excellent condition, very attractive due to its convenient location in Heerlen.

5)

Old (>40 years) single-family dwellings and apartments in an average to bad condition, first priority for demolishment in the near future.

6)

Affordable apartments and single-family dwellings in Heilust, Kerkrade. Not very popular, thus providing low yields.

A)

Social facility cluster in Terwinselen, Kerkrade. It is a financial risky project which will result in low yields but eventually improves the liveability of Terwinselen.

B)

Sports hall in Landgraaf. In Landgraaf Coniuratio has developed a sports hall which is used by schools, sport clubs and private groups. Due to the low yields, the development risk is quite high.

C)

Another future investment will be a community center in Schaesberg, Landgraaf. A project with possibly the lowest future yields, but due to its small size, not the biggest risk to take.

January 2011

Risk analysis

The red dots are the current and future social facilities Coniuratio wants to develop and manage:



35 Figure 10.3: Overview of the spread of risks of Coniuratio’s portfolio.

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

11. Financial Feasibility

Balance Coniuratio starts with a financial healthy balance in 2011. The solvability 2011 is 24,10%, the liquidity in this year is 1,20. Coniuratio starts in 2011 with equity of more than 90 million euro’s. The short and long term dept

for this year are 285 million euro’s. The total assets and liabilities are on the balance for 375 million euro’s. In appendix 7 there is a total overview of Coniuratio’s balance. Scenarios The economic developments and the effectiveness of Coniuratio’s strategies are difficult to forecast. This is the main reason for Coniuratio to choose two different scenarios for the next 10 years. The main difference between both scenarios is the economic climate. Some parameters will be different; this will lead to different costs and income for both scenarios. As a result of this, the planned interventions will be looked after and may change. In both scenarios, the financial risks will be guaranteed. Best case scenario The economic developments are positive in this scenario. De sales of some of the dwellings is going well, some more dwellings will be sold to generate some more resources for new developments. The vacancy level decreases in a positive way, as a result of this the rent losses will also decrease in a positive way. Enough space for new developments according our strategies belongs to the best case scenario. Sufficient senior and care dwellings will be developments within the financial situation. There is also enough space to improve the sustainability of a large part of the portfolio. During the years 1.370 dwellings will be demolished, almost 1.100 new dwellings will be developed. Overall the total portfolio will shrink with 458 dwellings. In appendix 8 there is a total overview of the mutations in the best case scenario. Despite the positive economy, every year there will be a loss at the end of the years. Great investments have to be made, those investments will mostly be paid back after some decennia. Figure 11.1 shows a quick overview of the total costs and incomes in the best case scenario. (In appendix 9 there is an extended overview of the costs and revenues).

Financial feasibility

As discussed in chapter 1, it’s important to get equilibrium within the asset and the space market. The right combination between supply and demand is important as described in chapter 1. In Coniuratio’s vision the vacancy has to decrease to 3% within a period of 10 years. Changes in the demand should be corrected in the supply side, for example by demolishing or development of new dwellings. To determine whether the formulated strategies in chapter 7 are actually realistic to carry out, the associated financial feasibility has to be conducted. This feasibility will be conducted in accordance with the in chapter 10 determined risk-profile. Coniuratio’s profile is mostly risk-avoiding, even though there’s an awareness of the shrinking characteristics of Parkstad Limburg. Coniuratio’s main goal is to reduce the vacancy level, so one of the more important aspects of the strategy is the demolishment of a lesser attractive part of the portfolio and older dwellings that have “completed” their lifecycle. With the conduction of the financial feasibility, it can also be determined if future developments of social facilities fit within Coniuratio’s financial boundaries, for example the social facility cluster in Terwinselen, Kerkrade which will be developed in 2011-2013 and is financially quite risky. Two scenarios have been conducted in the following analysis: a worst- and best-case scenario, with the reality probably lying somewhere in between. Important is, after each step, to reflect the results on the preliminary formulated strategies, especially during the conduction of the worst-case scenario. The poor economic situation and the negative developments in Parkstad can affect the development of risky projects, like the social facilities cluster in Terwinselen, i.e. postponement or even cancellation.

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Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

It is not strange that in the worst case scenario there will be a loss every year too. A positive effect of the bad economic conditions is that the inflation will decrease to a level of 1,6%. Figure 11.1 shows a quick overview of the total costs and incomes in the worst case scenario. (In appendix 11 there is an extended overview of the costs and revenues.)

Figure 11.1: overview revenues and costs of best and worst case scenario

38

Worst case scenario The economic developments are not as positive as in the best case scenario. The sales of the dwellings are disappointing, also the sales prices of these dwelling will decrease further. This results in a higher rent loss. Demolishment of dwellings in a poor condition must go on, to get the desired decrease of the vacancy level. The bad economic situation will influence the costs and incomes in a negative way. New developments will be looked after and some of these will be removed. Also the sustainability of some dwellings will be cancelled. During the years an amount of 1.450 dwellings will be demolished. Therefore 920 new dwellings will be developed according Coniuratio’s strategies. Overall the total portfolio will shrink with 639 dwellings.

Coniuratio social housing association Parkstad Limburg

Solvability/liquidity It is very important to look to the solvability and liquidity during the years. The solvability gives a view of the degree in satisfying Coniuratio’s financial obligations. In both scenarios the solvability will decrease strongly. In 2020 the solvability will be at the level of 18,54% in the best case scenario, in the worst case this will be a fraction lower namely 18,17%. Figure 11.2 gives a total overview of the solvability of each year.

January 2011

the debts has influence on the solvability though. Coniuratio has been able to keep the rate constantly. (In appendix 12 there is an extended overview of the both balances) Investments In both scenarios, different investments will be made by Coniuratio. The opportunity to invest will be different in both scenarios. In the best case scenario there is investment potential for more than 171 million euro, 1075 new dwellings will be developed and more than 3800 will be made sustainable. In the worst case scenario there is only investment potential for 146 million euro. In this scenario more dwellings will be demolished and less dwelling will be developed, 920 new dwellings will be developed and 3420 dwellings will be made sustainable. Figure 11.3 gives an overview of the investments in the best and worst case scenario.

39

Figure 11.2: Solvability best and worst case scenario

The liquidity is also an important financial aspect. This ratio gives a view of the degree in satisfying Coniuratio’s short term debts. Through the yearly losses Coniuratio needs increase their debts to be liquid. Increasing



Financial feasibility

Policy paper

Figure 11.3: Overview investments best and worst case scenario

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

12. Stakeholders Coniuratio has a wide network with strategic alliances and suppliers, all of them are located in Parkstad Limburg. By working with local companies the number of jobs in the area will increase, residents will less likely relocate because of the shortage of jobs and thereby prevent a higher vacancy rate.

Coniuratio also provides shelter to different types of tenants using multiple agencies, like the “Salvation Army”, “Reclassering Nederland” and “Mondriaan Zorggroep”. This way they try to help ‘special’ tenants and agencies and meanwhile decrease criminality and increase security and livability. The current implementation of all the alliances/suppliers is illustrated in figure 12.1, together with all the stakeholders in Coniuratio’s network. A more detailed overview of all the current cooperative partners, suppliers and the most frequently used stakeholders in Coniuratio’s network can be found in appendix 13.

Stakeholders

Now Until now Coniuratio has focused on dwellings and delivering good quality for reasonable prizes. To do this they need to cooperate with different corporations. The collaboration varies by corporation, some can be a strategic alliance, others strategic suppliers or just a network player. The main alliance Coniuratio is already involved in is Coniuratio OPL B.V., together with OPL. This alliance takes care of the developments of dwellings. In case of the suppliers, Hypodomus is Coniuratio’s most important partner. It handles the service around the selling and renting of Coniuratio’s dwellings.

Figure 12.1: Implementation of corporations

41

Policy paper

Coniuratio social housing association Parkstad Limburg

Future In the year 2011 Coniuratio will invest in social real estate to realize there strategy as a social real estate association. By creating alliances with other stakeholders, Coniuratio increases their specialism of care and project development and can decrease their costs. The new implementation of cooperation is illustrated in figure 12.2. Because of the increase of elderly people, the desire for care increases. With the alliance Coniuratio Homecare B.V., Coniuratio uses the expertice of Homecare to develop better care dwellings, for example a type of dwelling so couples can stay together although only one of them needs care and the other does not. Together with this alliance Homecare comes in as a new supplier to facilitate and offer service to the new ‘customers groups’ the alliance provided. As a result of this new alliance, Coniuratio OPL B.V. will start to develop social facilities, which are contrived by Coniuratio Homecare B.V. Due to the future strategies Coniuratio formulated, two new stakeholders will surface in the network: In partnership with Connexxion, new public transportation routes will be offered to make it easier for the more vulnerable elderly to visit the developed social facilities. In regards to the strategy concerning the sustainability and durability of Coniuratio’s portfolio, one of the main actions is to install PV panels on a large part of the dwellings. These panels will be purchased from Solar Modules Limburg, which is a local developer, thus providing more jobs in the region. A more detailed overview of this future alliance, supplier and network stakeholders can be found in appendix 14.

42

Figure 12.2: Implementation of corporations in the future



January 2011

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

To merge, it is important to know what the main issues are in the negotiations and what each other strengths are. Coniuratio will enter into negotiations with several financial healthy, reliable and stable housing associations which are active in Parkstad. Coniuratio itself thinks very environmental friendly and is specialized in elderly people. Coniuratio expects that the merger candidate will go on with this and can add their strengths, hopefully resulting in a win/win situation. In general, the first important benefit of proceeding merger negotiations is the possibility to expand expertise and reputation regarding social facilities and elderly care. The second important benefit is the possibility to improve the financial stability.

Stakeholders

Merger considerations and negotiations Coniuratio had a relatively limited market share and the financial position will decrease the next few years. Great investments and decisions have to be made to counteract the shrink, and decrease the vacancy. Coniuratio means collaboration in Latin, this could be the ‘magic word’ for the next coming years.

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Coniuratio social housing association Parkstad Limburg



January 2011

Policy paper

Coniuratio social housing association Parkstad Limburg



January 2011

Coniuratio enters an unpredictable time in the economical and demographical shrinking region Parkstad Limburg. Coniuratio wants to offer the best for their customers and their living environment, and by staying financial healthy. Maintaining social services and reduce the vacancy in Coniuratio’s operating districts is the main strategy for the next 10 years. Coniuratio keeps, by collaborating with stakeholders, a close watch on the market and social developments in Parkstad. By living up to its policies Coniuratio desires to achieve their goals, and are confident about the future. The executive board of Coniuratio, Eindhoven, 6 January 2011, Ruud Coppens Lars van Doorn Marianne Phernambucq Marco van der Spank

Closing remarks

13. Closing Remarks

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Coniuratio social housing association Parkstad Limburg



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Coniuratio social housing association Parkstad Limburg



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Alsem, K.J., (1991). Concurrentie-analyse in de marketing: theorie, technieken & toepassingen. Leiden: Stenfert-Kroese Uitgevers. • Avantis (2010). Avantis, European Science & Business Park. Obtained on 28-09-2010, from www.avantis.org • BTM (2010). Bedrijventerreinmanagement Parkstad Limburg. Obtained on 22-09-2010, from www.btmparkstadlimburg.nl • CBS (2008). StatLine: Bevolkingsgroei per gemeente. Obtained on 14-09-2010, from www.cbs.nl • CBS (2010). StatLine: Diverse kengetallen. Obtained on 14-09-2010, from www.cbs.nl • Cosijn, B. & Lengkeek, A. (Ed.). (2010). In gesprek over maatschappelijk vastgoed. AIR, februari 2010. • Forum Real Estate Investments (2007). Brochure Maatschappelijk Vastgoed. Goes: Forum Real Estate b.v. • Frambach, R., Nijssen, E. (1995). Marketingstrategie: het schrijven van een strategisch marketingplan. Houten: Educatieve Partners. • Geltner, D.M. & Miller, N.G. (2007). Chapter 1 and 2. Commercial Real Estate Analysis & Investments, second edition, 3-35 • Hestia Groep (2010). Woningaanbod huur Kerkrade & Landgraaf. Obtained on 14-09-2010, from www.hestiagroep.nl • Jennen, M. & Moll, M. (2009). Office market dynamics, the seeds of recovery after current turmoil. Real estate Research Quarterly, 2009, nr. 1, 26-32 • Leent, M. van, Moel, I. de, Wal, J. van de (2009). Maatschappelijk ondernemen met maatschappelijk vastgoed. Rotterdam: SEV. • Leidelmeijer,K., Marlet, G. (2009). Terugmetingen met de Leefbaarometer: 1998 en 2002. ’s-Gravenhage: VROM. • Loo, H. van der (2007). Vlammen met Visie. Holland Management Review , 115, 14-21 • Nimwegen, N. van & Heering, L. (2009). Bevolkingsvraagstukken in Nederland anno 2009. ’s-Gravenhage: NIDI. • OB Parkstad (2010). Parkstad Limburg Bibliotheken. Obtained on 21-09-2010, from www.obparkstad.nl • Parkstad Limburg (2008). Gebiedsdocument Parkstad Limburg. Heerlen: Parkstad Limburg. • Parkstad Limburg (2010). PILOT PARKSTAD ONORTHODOxxxxx & de PARKSTAD 5. Heerlen: Parkstad Limburg. • Pas, van de L.P.M. & Pas, van de B.L. (2009). Rapportage Woonwensenonderzoek Parkstad Limburg 2008-2009. Heerlen: Woonplein Limburg BV. • Porter, M.E. (1979). How Competitive Forces Shape Strategy. Harvard Business Review, March/April 1979. • RIGO (2010). Jaarverslag 2009. Amsterdam: RIGO Research en Advies BV.

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Resources

8. Resources

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Appendix Appendix 1; total overview portfolio Appendix 2; energy and living costs Appendix 3; sales owner-occupied-sector Appendix 4; competitors overview

Appendix 6; development plan Terwinselen Appendix 7; balance 2011 Appendix 8; mutations best case scenario Appendix 9; costs and revenues best case scenario Appendix 10; mutations worst case scenario

Appendix

Appendix

Appendix 5; risk checklist

Appendix 11; costs and revenues worst case scenario Appendix 12; balances worst and best case scenario Appendix 13; network coniuratio now Appendix 14; network coniuratio future

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