From WCVA's Community Asset Transfer event, Barry, June 2015.

1. Viability not Liability Workshop
Asset Transfer : Everything You Needed to Know
Peter Williams - Director, DTA Wales
Memo Arts Hall, Barry
10th June 2015

2. Development Trusts Association Wales
• The Development Trusts Association supports its development
trust members as part of a community regeneration &
enterprise network of 40 Trusts in Wales and more than 900
across the UK
• Our members hold community owned assets worth £500 million
across the UK
• Income generated from assets is £25 million p.a.
• We are part of the Social & Community Enterprise and
Community Regeneration Networks in Wales, helping to grow
the Social Economy and build sustainable communities across
Wales
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3. Development Trusts
• Community owned and led
 Community accountable and based
organisations
 Independent
• Cultivating Enterprise
 Operating as social and community
enterprises
 Trading in good or services
 Not for private profit
• Securing Community Prosperity
 Creating wealth in communities and
keeping it there
• Building Assets
 Acquiring community owned land or
buildings to create income & ownership
 Engaged in long-term economic, social,
environmental & cultural regeneration
• Diverse
 Operate in villages, market & coastal
towns, rural areas, former mining
communities, housing estates & urban
areas
 Committed to guiding values, new ways of
working, actively involved in partnerships
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4. Asset Based Development &
Development Trusts
• Development Trusts have been at
the forefront and have pioneered
community based Asset
Development in the UK for more
than 40 years
• The DTA network across the UK and
in Wales includes a number of
trusts that have demonstrated the
case and value of Asset Based
Development
• Briefing on Asset Development
published by DTAW & WLGA in
2005
• Taking Quirk Forward in Wales –
Research for Welsh Assembly in
2009
• Community ‘Right to Buy’ campaign
• DTA Wales Guide to Asset
Development ‘To Have and to Hold”
• DTA Wales Assets Web Portal:
http://assetsportal.dtawales.org.uk
• DTA – England managed the Asset
Transfer Unit for 5 years
• DTA – Scotland managed the
Supporting Community Assets
programme
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5. Context for Asset Development
in Wales
• Track record of asset
development in Wales
• Many have been hard won
success in spite of obstacles
• Other assets have been developed
with support of partners- local
authorities other public bodies
• Many assets have been acquired
by community organisations at
market value with use of grant or
loan funding
• Community Asset Development
cuts across a number of Welsh
Government priorities – Finance,
Local Government and
Regeneration, Communities,
Economic Development,
Sustainable Development
• Lead by Welsh Government
Property Division and National
Assets Working Group on
Community Asset Transfer in
Wales – Best Practice Guide, 2015
• Consultation on Assets of
Community Value Measures –
current by Communities Minister
• CAT 1 Programme – Big Lottery
and Welsh Government 2009
• CAT 2 Programme – Launched by
Big Lottery 2015
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6. What is Asset Based Development?
• Community ownership of buildings & land leads to community
transformation
• Possession of tangible assets is a key to achieving viability,
independence sustainability which underpins community based
enterprises & regeneration organisations
• Focus on acquisition or transfer of land and buildings by Development
Trusts, Co-operatives & other Community Enterprises
• Can also include equipment, other natural assets (woodland,
renewable energy, materials for recycling)
• Financial assets – capital funds, endowments or investments on
balance sheets
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7. History of Asset Development
• NOT NEW!
• Early history relating to land reform and land rights (e.g.. Scotland) and
Steve Wyler – A history of community asset ownership, 2009)
• Community Enterprise and Co-operatives History
• Community-led economic development and regeneration
• Asset based community development (ABCD models)
• Community empowerment and ownership and re-investment locally
• Quirk Review 2007
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8. Asset Transfer
• Local authorities and other public bodies can play a key role in
transferring assets to community organisations and enterprises
• Welsh Assembly General Disposal Consent 2003 for ‘Disposal of Land
in Wales by Authorities for Less than Best Consideration’
• Land or buildings can be transferred at less than market value where
there is benefit to ‘economic, social or environmental well-being’ of an
area
• Welsh Assembly Government and Big Lottery £13 million Community
Asset Transfer Fund, 2009
• Added value of assets to communities is greater than ‘financial’ value
• Need to promote & encourage asset transfer - DTA Wales training
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9. Asset Transfer – Key Features
• Often used loosely to describe a whole spectrum of options of
community ownership or management from licenses, leases or
freehold transfer.
• Mostly used in context of transfer of public assets to community
organisations (but can include private sector transfers)
• Link to public sector is due to legal accountabilities and possibilities for
transfer, at ‘less than best consideration’.
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10. Making Assets Work
Creating New Social & Community Enterprises
Assets are the base for a wide range of
community enterprise & services
provided by Development Trusts, Co-
operatives & other Community
Enterprises.
Examples in Wales include
 Managed workshops or office space
 Shops & retail developments
 Restaurants & cafes
 Community resource centres
 Arts & cultural enterprise centres
 Heritage & craft workshops
 Housing – including green homes
 Sports & leisure facilities
 Recycling & environmental improvements
 Play & childcare facilities
 Renewable energy businesses
 Healthy living centres
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11. Benefits
• Community ‘ownership’
 demonstration of shift in ownership &
local control
 Communities ‘doing it for themselves’.
• For communities
 sense of stability & positive vision
• Income Generation
 Can be used to generate independent
income & investment
• Local economy
 long term benefit, retaining wealth locally
 growing assets as foundation for renewal
& enterprise & creating local jobs
• Builds independence and skills,
credibility & viability
• Creates a base & focus for new
community enterprises &
services
 employment, training, arts, resources, etc.
• Enables access to wider finance
 income generation & loans
• Demonstrates sustainable
development & resilience
 regenerates derelict or underused land or
buildings
 productive use of resources
 brings together social, environmental and
economic solutions, community
reinvestment
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12. Challenges
• Community asset development isn’t for everyone.
• Community assets need to be ‘viable’, not liabilities and ‘fit for
purpose’ – many are not!
• Culture Change - Staff & Boards need good range of skills,
knowledge & governance, to buy, develop & manage assets.
• Can be complex and involve risk - finance, legal, design,
planning.
• Need for good professional advice & support.
• Long term approach & vision required – to build assets &
enterprising communities
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13. Community Assets
Case Studies
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15. GALERI CAERNARFON
Est. 1992 as market town development trust. Started with one property & £350K
grant. Owns & has refurbished 28 derelict properties in town centre & 11 further
properties in slate mining valleys. Community arts project led to development of
award winning £7.5 million creative enterprise centre Galeri Caernarfon with
concert hall, cinema, workshops & offices for rent & café.
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16. 29 STRYD FAWR
BEFORE AFTER
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17. 4 PALACE STREET
BEFORE AFTER
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18. LIPTONS, DEINIOLEN
NOVEMBER 2000 OCTOBER 2001
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20. • Promo Cymru co-operative enterprise long track record in Cardiff and South Wales working
with young people and cultural industries, media, music.
• Manage CLIC programme across Wales and Youth access TV
• Approached DTA Wales about acquiring Asset Base to build on work in valleys
• Acquired Ebbw Vale Institute on short term license as a stepping stone to Asset
• Transfer and winning Big Lottery CAT 1 Programme support
Ebbw Vale Institute
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21. Menter Mon
• Originally set up in 1996 to administer the Leader II Programme.
• Wales winner of the UK Enterprising Britain Awards
• Developed wide range of regeneration and enterprise projects including Llys
Llewelyn as holiday accommodation, tourism information, shop, gallery and
laundry.
• Recently acquired a number of Assets through transfer including Grade II listed
Llangefni Town Hall approved for funding under Big Lottery Wales CAT 1
Programme in 2010
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22. Menter Mon acquired a
number of buildings through
Asset Transfer including Grade II
Listed Llangefni Town Hall,
Princes Pier, Llys Llewelyn.
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23. SBECTRWM, Vision 21
Long established community enterprise organisation working with people with disabilities in Cardiff
and the Vale. Owns a number of assets, including an industrial unit for carpentry, IT workshops,
horticultural centre, managed workspace & long term lease on former school site refurbished as
Sbectrwm Community Resource Centre with office, meeting, pottery & garden facilities.
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24. Copyright DTA Wales 2015 24Photo: Tim Martin

25. Glyn Wylfa, Chirk Pontcysyllte Aquaduct and World
Heritage Site
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26. Viability or Liability?
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27. Definitions
• Asset Development
• Asset Transfer
• Viability
• Sustainability
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28. Asset Development
Asset Development is a term used to describe the physical
transformation of a land or building asset and the transformation
of a new or existing community organisation or enterprise, to
owning and managing assets.
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29. Asset Transfer
Asset Transfer is a term used to describe the process of the transfer
of the ownership (or sometimes leasehold) of property or land,
from one party to another.
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30. Before you Start
• Do you want to develop a new enterprise or business model, or deliver
services or activities?
• How will you ‘sweat your asset?’
• What you do on the back of the asset, is equally or more important,
than acquiring and developing the asset
DTA TOP TIP
Be clear about what you want the asset for!
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31. Is it the ‘Service’ or ‘Asset’ that is being
Transferred?
• Is it a freehold or leasehold transfer option?
• Have you considered other asset options and locations
• Avoid mistakes from the outset by research, planning, professional
advice & discussion with stakeholders
DTA TOP TIP
Separate the service and the asset and realistically assess whether either or
both are ‘viable’ and ‘sustainable’
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32. Is the Asset ‘Fit for Purpose’
• Will it more than ‘wash it’s face’ and generate income and a surplus or
be a liability?
• What are the costs to bring it up to standard to operate?
• Cost of new build versus refurbishment
• A good idea but have you considered other asset alternatives?
• Location, accessibility, parking
• Planning or other constraints e.g. full repairing lease, heritage, legal
DTA TOP TIP
Be realistic, will it accommodate your enterprise and activities, with room to
grow?
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33. Viability and Sustainability
• Viability – Will the asset have or generate the financial resources you
need to acquire, develop and manage the asset and more than cover it’s
cost?
• Sustainability – Does the organisation have the capacity, right people,
skills and attitude to operate, manage and maintain the asset and
enterprises into the foreseeable future?
DTA TOP TIP
Test every aspect of the CAT process and development through these two
perspectives
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34. Starting Points
• Clear project objectives
• Right organisational culture and attitudes
• Outcome focused – realistic and enterprising
• Leadership
• Professional advice at all times
• Viability and Sustainability Checks
DTA TOP TIP
Know the overarching issues and skills required, that run through the asset
transfer and development process
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35. Overview of the
Asset Development Process
• Inception – the idea
• Feasibility – wanted, desirable, achievable
• Detailed design and planning – fixing plans and cost (viability and
sustainability)
• Implementation – managing the process and professionals
• Management – looking after, using and “sweating” the asset
• Impact – capturing and measuring performance
DTA TOP TIP
Acquire the knowledge and skills you need to take ownership of the process
and asset
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36. Getting Good Professional Advice
• Legal advice
• Architect
• Project Managers
• Financial Advice
• Mechanical, Environmental
Engineer
• Business Support
• Surveyors
• QS/Structural Engineer
• Planning Advisor
• Building Contractors
• Landscape Architects
DTA TOP TIP
Don’t underestimate the need for qualified professional advice and when to
get it
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37. Types of Assets – Peer Learning
• Wide spectrum of types and uses of community owned land and
buildings
• Learn from others about practical experience of what works and
doesn’t work
• Benchmark and test your idea against similar assets and enterprises
DTA TOP TIP
Learn from and visit, at an early stage, other community enterprises, who
have developed similar types of assets
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38. Build Stakeholder Involvement & Support
• Detailed guidance in “To have and to hold” DTA Assets Guide
• Stakeholders can create value, commitment and support and help
reduce risk
• Can create opportunities for innovation
• Improve sustainability for the asset and the organisation
DTA TOP TIP
Plan a process and create opportunities for involvement of stakeholders at
different stages of transfer and development
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39. Feasibility
• Consider as best you can all the “make or break” questions in DTA ‘To
have and to hold’ Guide
• Is the proposal desirable, can it be accomplished, is it viable?
• Identify and forecast all likely costs and income
• Can Capital costs be secured?
• Can the Asset be secured on right terms?
• Is there a market and community support
DTA TOP TIP
Take time to undertake an initial and detailed feasibility study before you
rush into a business plan
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40. Forecasting Costs
• Land & Buildings can be liabilities because they cost a lot to run and
maintain and have legal & other responsibilities
• Planning will help inform your business model and plan and design
and construction
• Need to recover the costs and make a surplus
• See DTA To have and to hold Guide – managing physical maintenance,
managing use and organisational management checklists
DTA TOP TIP
Don’t underestimate the management and maintenance costs
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41. Risk Analysis – Example
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42. Investment Readiness
• Credibility – of business model and clarity
• Competence – of organisation, governance, financial management etc.
• Capacity – to deliver and to grow
• Confidence – to pitch and sell your idea
DTA TOP TIP
Remember the 4-C’s: that funders and investors look for
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43. Building Financial Stability
• Full Cost Recovery
• Understanding your Business
• Understanding the market and
benchmarking against the best
• Being real about risk
• Knowing the numbers
• Your USP – Social Return on
investment
• Diverse, high quality revenue
streams
• Ownership of the Strategy –
your Board, Trustees,
Stakeholders & staff
• Relationship Management with
funders & investors
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44. Next Steps
• Raising the Finance
• Detailed business and financial planning
• Securing further professional advice
• Design, construction and development
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45. Taking Forward Community Asset
Development & Transfer in Wales
• Learn Lessons from Advancing Assets Programme & Asset Transfer Unit in
England and Community Assets Support Programme in Scotland
• Specific Training for Third & Public Sectors –identifying viable assets,
managing assets, asset transfer (DTA Wales Seminars and Support)
• Development of Specific Community Asset Transfer Policies by Public
Bodies.
• Opportunities for more Strategic Transfer of Assets to Third Sector
• Consultation on Assets of Community Value Measures by WG
• Guidance & Risk Management- in Asset Transfer
• Investment required (CAT Fund, CFAP Fund, Loan Funds, Community
Shares)
• Capturing Good Practice & Added Value of Asset Transfer and
Development (See ARAD Economic Impact Study of Galeri Caernarfon)
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46. Further Information
Websites
www.dtawales.org.uk http://assetsportal.dtawales.org.uk
www.renewwales.org.uk www.communityenergywales.org.uk
DTA Publications:
To Have and To Hold – DTA Guide to Asset Development by Lorraine Hart (2005 & 2010)
Asset Transfer Route Map - ATU 2010
Assets for Enterprising Communities in Wales– Briefing WLGA/DTA Wales 2005
Green Asset Guide – improving the environmental performance of assets (DTA 2007)
Other
Welsh Government Community Asset Transfers in Wales Best Practice 2015
Quirk Review- Making assets work (May 2007)
Opening the Transfer Window (CLG 2007)
CLG – Managing Risks In Asset Transfer A Guide
Community Land Trusts – capturing value for communities
Communities Taking Control – report on community ownership of assets OPDM/Home Office
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47. Support and Advice for Assets
Organisation Website
DTA Wales www.dtawales.org.uk
Association of Independent Museums www.aim-museums.co.uk
Big Lottery Fund https://www.biglotteryfund.org.uk
Building Preservations Trust http://www.ukapt.org.uk/
Business Wales www.business.wales.gov.uk/socialbusinesswales
Community Energy Wales www.communityenergywales.org.uk/
Community Land Advisory Service Wales http://wl.communitylandadvice.org.uk/
Community Land Trusts www.communitylandtrusts.org.uk
County Voluntary Councils www.wcva.org.uk
Locality www.locality.org.uk
Planning Aid Wales www.planningaidwales.org.uk
RICS Wales www.rics.org.uk
RTPi www.rpti.org.uk
The Prince’s Regeneration Trust http://brick-work.org
Wales Community Woodlands Association www.llaisygoedwig.org.uk
Wales Cooperative Centre www.walescooperative.org.uk
Wales Council for Voluntary Action www.wcva.org.uk/CAT2
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48. Membership - Join us!
• Emerging development trusts or existing community regeneration
organisations or enterprises wishing to become development trusts
can become Full Members of DTA Wales
• Housing organisations, local authorities & other partners can
become Associate Members
• Benefits include: newsletter & publications, UK wide and Wales
based conferences, training & seminars, access to best practice
network, peer advice and support, members’ discounts, links to
Energy Action Group and advice from Renew Wales and Community
Energy Wales
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49. Contact
info@dtawales.org.uk
www.dtawales.org.uk
http://assetsportal.dtawales.org.uk
Tel: 02920 190 260
@DTAWales
DTA Wales
www.renewwales.org.uk
www.communityenergywales.org.uk
Suite 1b, Second Floor,
Stangate House, Stanwell Road,
Penarth,
Vale of Glamorgan,
CF64 2AA
Tel: 02920190260
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