Cocoon: Rapid Housing Solution any time any place any purpose Suitable for local authorities in the UK & Europe for temporary accommodation, migrant housing and emergency disaster shelter
Executive Summary • Cocoon offers a wide range of modular housing – affordable, “quick-to-build” and energy efficient. Business aims to grow 4 times from 500 units (Yr 1) to 2000 units (Yr 4) • “Freedom”: Containers based “plug-n-play” solution with “collapsible” extended area for shower/kitchen. • “Kudos”: Flat-pack system, easily transportable, assembled in hours without any complex toolkits. • “Multibuild”: Proprietary “Track and Lay” technology to simplify groundwork & overcome access issues. • All units are environmentally friendly - fitted with solar panels & LED bulbs, proprietary power management and ventilation system, which deliver reduced energy bill for occupiers. • Flexibility – “Kudos” range are assembled in hours (for short-term residential use), “Multibuild” units are built in days (for semi-permanent tenure). All units can be dismantled and redeployed. • Presently Cocoon caters towards the UK Local Authorities’ demand for Temporary Accommodation. With “housing the migrants” becoming European priority, Cocoon is aiming to deliver large scale projects across the EU in a limited timeframe.
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About us: Cocoon Projects: • Working with ethical investors, local authorities, housing associations and charities, Cocoon aims to deliver pre-fabricated modular units - built within a short span of time (hours/days) in any place and for any purposes such as temporary accommodation in the UK, or housing the migrants across the EU. Our aims: • Cocoon technology aims to transform the lives of a vulnerable sector of our society, represented by a significant percentage of single people and families who face the desperate situation of not having a roof over their heads. • We believe that Cocoon technology is good for business and will help change the lives of thousands of people with the help of ethical investment.
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Freedom Range
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Why is this an investment opportunity? • The housing crisis, particularly in the London area, has resulted in the highest number of statutory homeless ever. The number currently stands at 70,000 and is increasing by 11% per annum. • This is a generational problem, partly created by the right to buy and partly by the failure of the local authorities to replace the 1 million homes lost from the renting sector. • Over 300,000 homes are required as a minimum for the next 10 years to correct the problem. • This is not going to happen, particularly with the planning laws and green belt restrictions. • The cost of building on limited land space in London restricts local authorities in resolving the problem. • The solution is to rent homes that can be built rapidly and in micro-sites eg. old industrial sites, disused playing fields, garages in disrepair, limited space between blocks of flats in built up areas. • The local authority is desperate for a solution and will supply brown field sites for this purpose. • Investors can receive consistent returns with the knowledge that the local authority is the counter party – a very safe investment. 5
Target Market Cocoon has several target markets in the UK and Europe: 1. 2. 3.
Housing the migrants and refugees Temporary accommodation for local authorities in densely populated cities (e.g. London) Providing disaster relief for victims and emergency shelter
Size of market: Migrants & Refugees Migrant to be resettled under UK "Protection Scheme" over next 5 years Refugees to be resettled in EU under "Migrant Quota Plan"
2016
2017
2018
2019
2020
Total
Year 1
Year 2
Year 3
Year 4
Year 5
#
20,000
4,000
4,000
4,000
4,000
4,000
#
960,000
160,000
200,000
200,000
200,000
200,000
2015
2016
2017
2018
2019
2020
Size of market: Temporary Accomodation in UK Households in TA as at 31 March 2015
#
64,710
71,181
78,299
86,129
94,742
104,216
Growth p.a.
%
11.0%
10.00%
10.0%
10.0%
10.0%
10.0% 6
German migrant crisis Extract (Sunday Times - 11th Oct. 15) “Merkel fights to keep door open as German fear of migrants grows” • Influx of migrants has overwhelmed German institutions with some estimates that more than 1.5m migrants will seek shelter in Germany this year. • People are sleeping in the open because of lack of accommodation or housed in tents despite overnight temperatures of below freezing. This is leading to a growing need for rapid housing • The number of asylum applications awaiting process has reached 300,000 according to the Ministry
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How Cocoon can help? Our solutions: Cocoon structures can be set up at migrant processing near border Kudos housing can be set up in several hours to house refugees for a fraction of the â‚Ź9 billion set aside by Germany Building 30,000 flats in Berlin over 10 months is too long as winter approaches Wealthier countries west of old Iron Curtain can pay for Cocoon rapid modular housing for poorer East European countries who cannot afford to house migrants Kudos housing can be set up in several hours to house 10,000 refugees that crossed to Austria in one day alone
8 Source: Sunday Times Article, 20 September, 2015
Target Market (2): Temporary Accommodation (TA) Crisis in London
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Temporary Accommodation (“TA”) Crisis in London • UK housing is in crisis due to a shortage of affordable housing & increasing private rents. Over 65,000 households are in TA - 75% of the problem is in London. Vulnerable people are placed in “bed and breakfast” (B&B) accommodation at high costs (£60~£70 per night). • £9 billion of taxpayers’ money goes to private landlords with at least £3 billion being spent on poor quality accommodation annually. Private landlords received £18million of extra incentives last year, yet 37% of homelessness happened due to evictions by private landlords. • Homelessness costs for councils have risen sharply, who are facing budget cuts of 20% in the coming years. E.g. Westminster Council’s bill rose 63.5% to £41.8 million (13/14) from £25million (12/13) • London is the most expensive and least affordable region and introduction of universal credit and a reduction in welfare bills by £12 billion will increase the number of homelessness. • How Cocoon can help? • Cocoon will make use of unused urban micro-sites (like car-parks) or large brownfield sites waiting for planning applications – helping to solve housing crisis through unused spaces. • TA costs can be reduced by 50% (e.g. 50 Cocoon units can save £1 million per year as compared to B&B charges) – helping councils to deliver a solution under reduced budgets. 10
Target market (3): Disaster Zones • Cocoon units can provide emergency shelter for people immediately after any natural disasters. • Global emergency accommodation market will be targeted in partnership with Blue Sky, a sustainable company with product ranges including: Ø multi-cooking facility – staple food can be cooked using any kind of fuel Ø water solution – rainwater harvesting, de-salination Ø organic food growth – like Solargrow • Blue Sky is a brain child of Cocoon’s technical director Alex Bushell and supported by the well-known social publicist Joanna Lumley
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Key Points: Cocoon “Freedom” Product Line • Unique: Pre-fabricated standard units (20ft X 8ft) can be extended to family units (40ft x 16ft) on-site by using unique “collapsible” structures - doubling the space at half the cost of transportation as compared to transit cost for two standard containers. • Flexible: Units can accommodate single people or larger families. They can be stacked up vertically – enabling a higher density of accommodation. Community facilities like medical centres can be provided. • “Plug-n-play”: Units can be rapidly deployed in a short space of time to shelter occupiers during cold winter months. Bricks & mortar solutions takes too long to build. • Self-contained: Kitchen and shower facilities are included. Our unique multi cooking facility can be given to enable occupiers to cook basic staples like rice and bread. • UK based production facility, which ensures quality, consistency and reliability. . • Purchase costs of £15,000 -£40,000 (20% of the bricks and mortar option) • Units can be easily disassembled & relocated to other areas at short notice. • 15-year warranty means that the units can be re-deployed during their life-cycle.
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Key Points: Cocoon “Kudos” range • Tested and tried flat pack solution – easily transportable by a truck 10-20 units at a time • Approved by the British Army, U.N. & World Aid (3,000 units in operation in Serbia for past 15 yrs) • Higher density – suitable for urban cities. A land space of 1 hectare can allow 200 family units. • Totally flexible in terms of size and shape as units come in 8ft x 8ft panels • Easy solution – easy to transport (a team of 4 can carry the panels), easy to set up - a family unit (16ft x 32ft) can be put up in 2 hours. • Units fully fitted, only requires access to water supply, do not require foundations and therefore can be built on waste land or old factory sites. • UK based production facility • Price between £50k-£60k
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Key Points: Cocoon Multi-build Line • The proprietary “Track and Lay” based modular system uses a template of tracks which speed up the layout process and simplify the ground preparation work. • Semi-permanent solution - reduced “build” time, easily assembled/disassembled, and easily transportable. Low maintenance costs. • Removes design limitation with traditional containers due to space restriction and access to sites. In London access restriction can lead to extra cost of thousands of pound to hire cranes. • Low Cost “High Specification”- uses different building materials like locally sourced wall structure • Building units are expandable as family or as community size buildings. • Very low carbon footprint - meet UN and set Global standards (subject to certification) • Projects can include communal facilities like medical & education. • Utilizes local employment creating micro economies.
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Products
Product range matrix Freedom range
Kudos range
Multi-build range
Modular – fully flexible
Modular – fully flexible
Type
Modular – fully flexible Container based with flexible extension space
Flat-pack system
“Track and Lay” system (flat -pack)
Size
minimum size 20 ft X 8 ft
comes in panel of 8ft X 8ft
fits any shape & size of land
"plug - n - play" solution pre-fabricated units, site can be USP operational in hours fitted with all basic amentities Self-contained and energy saving measures Tenure temporary (10 years)
robust built, scaleable solution easily transportable, can be built at the site in few hours fitted with all basic amentities and energy saving measures temporary (10 years)
robust built & aesthetically pleasing built with locally sourced building materials in days fitted with all basic amentities and energy saving measures semi-permanent (15 years(
Price range
£20,000 - £40,000
£30,000 - £50,000
£50,000 - £70,000
Purchase options
1. outright purchase 2. long-term leasing
outright purchase
outright purchase
Target market
UK social housing (to start with UK & Europe - residential market London & South East) (target: e.g. Germany)
Features:
USP
UK & Europe - residential market (target: e.g. Germany) 15
Eco-village: Chatham, Kent • Demo location: Fort Luton • Area: 1 acre land space • Access: 35 miles from Dover & London, 30 mins train to Kings Cross • Purpose: 1. 2.
To showcase the wide range of Cocoon units A “live” site housing vulnerable people from local areas
• Facilities: Office space, assembly & storage spaces • Downstream effect: Generate local employment • Completion time: November 2015
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Investment Opportunity • Investors in Cocoon will benefit from “social impact” • Investment will also: • (a) the opportunity to invest from £5,000 to £100,000 either in equity or return on investment at 8% per annum for a maximum of 3 years. • b) the Cocoon units will be rented per annum to governments/local authorities for an estimated 10% IRR per annum, which will after project costs, ensure an 8% per annum interest for investors.
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THANK YOU
Contact us: David Collett Chief Executive Officer M: 07714299003 Tel: 01453 873 454 Email: info@cocoonproject.co.uk www.cocoonproject.co.uk
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