History and Context

Stock Transfer - Range of Challenges

Delivering Transfer Promises

Promise Progress

Rent Guarantee 5 years RPI + 1%

Rents kept within guarantee

Homes will be improved Over 20,000 homes fully modernised

Secure neighbourhoods Partnerships and dedicated teams to deliver safe, secure neighbourhoods

Tenant Participation Nearly 700 tenants directly involved in shaping the service

Key tenancy rights protected

Rights protected with over 3,800 Right to Buys exercised

Service Improvements Comprehensive improvement programme – call centre, office refurbishments, on-line services

So Why Change to Gentoo?

Threats:• Investment Plan• Maintenance Reductions• RTB’s• Employment

Opportunities:• Renewal Plan• Inherent Business Capacity• Board Support• Window of Opportunity

Structuring for the Future

Gentoo Group

Gentoo Construction

Gentoo Homes

Gentoo Ventures

Gentoo Sunderland

Finance & ResourcesNew Business DevelopmentBusiness Improvement and StrategyEnvironmentCustomer agenda

Commercial ConstructionDomestic ConstructionModernisationCentral maintenanceQS and consultancy

New Home developmentRenewalMixed tenure

Development for saleInvestment brokeringEstates and property management

Housing management servicesCustomer serviceRepairs service

GentooLiving

Care and SupportSocial InvestmentRegenerationCommunity EnterpriseRegeneration

The Investment Plan

• £350 million funding to modernise homes and spending over £1 million a week

• From 80 modernisations per year before transfer to 3,000 per year since transfer – over 22,000 now completed

• Exceeding the Government's Decent Homes Standard with a wide range of improvements to existing homes

• Extensive customer consultation prior to work beginning and high levels of customer satisfaction with completed work

• Tackling unpopular areas of housing through demolition and new build – aim is to create sustainable mixed communities

• Benefits of mixed tenure development• 10 Year Programme – began in 2003 but subject to

regular review• £440 Million• 436 Acquisitions• 3930 Demolitions• 3604 New Homes• 1811 Rent• 1791 Sale

THE RENEWAL PLAN

• Many activities across the City carried out under the banner of ‘social investment’ – many have been responses to opportunities rather than a strategic approach

• Profits from subsidiaries are re-invested into the communities in which the Group works

• Delivered predominantly by Gentoo Sunderland and Gentoo Living teams – with 1,700 staff and 98 neighbourhoods can be difficult to co-ordinate, monitor and evaluate

• Focus on making neighbourhoods stronger – Gentoo is sponsoring Academy360 in Pennywell to improve educational attainment in a deprived area

• Developing a Corporate Social Responsibility database and will be introducing an impact assessment process (SAA/SROI) in 2009.

SOCIAL INVESTMENT