Post on 07-Aug-2015
transcript
(c) Darindranath Gunesekera 2015
Dr DARIN GUNESEKERAOf
Capital Markets for the Marginalized (CMM)Inc.presents
“Bringing The CapitalMarkets
Home to the People”:
The SocialReal Estate Investment
Trust(SREIT)
(c) Darindranath Gunesekera 2015
Vox Populi Vox Media We Need Homes They need Homes We Need Better Cities They need Better Cities We Need Livelihoods They need Livelihoods
Politicians’ Thunder
WE WILL GIVE YOU HOMES WE WILL GIVE YOU BETTER CITIES
WE WILL GIVE YOU JOBS
The Most Visible Global Urban Problem
Slums: Upwardly Mobile Migrants
“”””’”Stuck” Between
Villages and Cities
(c) CMM 2014(c) CMM 2006 9
(c) Darindranath Gunesekera 2015
The Capital Market is not Working
We Need A Stock Exchange for These Needs
Start with HOMES
Look at all elements of the process with the best standards agreed upon as Socially Desired
Then find the Financial Solution
THE INSIGHT - SEE & DO
(c) CMM 2014(c) CMM 2006 14
Key -Land Cycle Process.
First vacant or acquired land (Trust 1) 1
Occupied Estates:(Trust 2, 3 of Cycle 2)
2 3
Occupied Estates:(Trust 4..7 of Cycle 3)
4 5 6 7
Land Cycle 1
Land Cycle 2
Land Cycle 3
– projects exchanges new units for vacant possession of old units– New units must be more attractive to encourage the move
Slums occupy 600 sq ft ground cover/ unit; planned units only 110 sqft
(c) Darindranath Gunesekera 2015
TRUST Authority Social
HousingResident
Land
Shares
VacantPossession
Shares
• Start with a compact city area re-development project plan
• Existing Social Housing residents approve the plan• This facilitates a Trust market deal between the
landowner (Authority) and social housing residents. • The deal is shown above
MY SOLUTION: THE SOCIAL REIT
(c) Darindranath Gunesekera 2015
(c) CMM 2006
TRUSTInvestors
Cash via
Investment Banks
Shares*
* Includes right to ownership of a specific house / flat
SREIT 2
(c) Darindranath Gunesekera 2015
(c) CMM 2006
Trade via Investment
Banks *
Shares
Investors(Authority,Individual,
Institutional)
On – goingSTOCK EXCHANGE
Market:
EXCHANGE
EXCHANGE Regulates Information Flow
SREIT 3: A STOCK EXCHANGE
(c) CMM 2006
The People’s Stock Exchange
The People’s Stock ExchangeWe come because We TRUST
The Result
675675 apartments in first ever high rise
by slum dwellers, designed by the residents
4000
4000 people vacated and re-located
Financial Returns: Unlocking the Profit in the Land
Investment: SLRs600M (USD6M)
Outside Community Sales (Financial Return): SLRs1700M (USD17M)
(c) Darindranath Gunesekera 2015
(c) CMM 2006
Project Results BEFORE AFTER
Two actual pictures of Asian High Population Density City Center areas. There is a CHOICE!!
Which happens may depend on Social Entrepreneur’s Ability Not developer/contractor ability.
(c) Darindranath Gunesekera 2015
Is the Mystery of the World - Stock Exchange Action?
Or is there another DRIVER ? The “Social” in Social Entrepreneur ?
This is the other Sphere
Finance or Money enables a finite world of Exchange
There is a Social Sphere without Money Exchange
This is the world of Emotion
BEHIND the SOLUTION
(c) Darindranath Gunesekera 2015
Scenario: People Community in Urban n’hood Needs: earnings, consuming, education, health traffic,
homes, spiritual, life style and entertainment
Result: The Internet must provide a Mapping of the Community, its households and its people with their needs and desires, into itself.
The internet must inform and perform the routes and interactions of the mapping.
IESThe Internet of Emotions & Social
Acts
(c) Darindranath Gunesekera 2015
The Social World has Empathy or Empathic actions (a flow concept) Trust (a stock concept)
Future Enterprise will have BOTH (Business + Social )with NO trade offs (Social Not Tradable with Business; Rights not for Sale.)
The Basics
Business Entrepreneur Social Entrepreneur
Market Forces Empathic (re)actions
Financial Capital (Congealed Profit) Trust (a social stock) (Congealed Empathy)
Commercial (Money) Action Social Action
Ever increasing Profit Social Good, Societal Balance
Freedom of trade Human Rights
Becoming a Social Entrepreneur: My Journey
(c) Darindranath Gunesekera 2015
POVERTY - A Reality where one finds oneself and hopes it is a way station Social Poverty - Risky Living; Uncertainty; Stress Emotional Poverty - Alienation; Depression Cycles;
IES Through Empathic action (reaction) and Trust build up Reduce, eliminate - Poverties above
“Bring The People Home” To A decent status in the mainstream of socio-economic life To A step on the Property Ladder To A step on the financial asset ladder
WHAT IES MEANS
(c) Darindranath Gunesekera 2015
You cannot Collapse IES to Money (No Money Equalizer) There are Two spheres or “internets” and they cannot be traded. Human Rights
are in IES. Commercial and IES are not tradable. Social Action is a dynamic. It works. Social Action is not Static. As IES is always in dynamics; there is no stable state solution.
SO We do not think in terms as “Give them a Good Home”. As e.g., in rural settings, the constant dynamic is people multiply in urban settings, the constant dynamic is cities rise and fall Instead when we say “Bring the People Home (to the Capital Market)”, this is
dynamics Only.
“Horseless Carriage” Mistakes
总结Summary
Social REIT is a technical breakthrough where the solution is expressed in the standard capital market terms for a technical concept.
The Trust objective is to re-plan the LAND to provide decentquality housing and area development for persons at low levels of income in growth areas.
It is NOT based on State spending but provides PROFIT to the State & relieves it of welfare burdens.
It is based on regulated markets; NO ROLE Required for Foreign Donors nor NGOs.
It depends on a Empathic Social Entrepreneur Catalyst & Doer.
(c) Darindranath Gunesekera 2015
separate video
The Past and Present seen by independent video production.(6 years later; long after project period; 5 years after full Condo hand over).