Magenta Living is the largest registered housing provider in Wirral, owning and managing just under 13,000 properties. The organisation has invested almost £200 million in its properties over recent years and has ambitious plans to build over 800 properties for rent and sale. Whilst focusing on future investments, managing existing property investments is equally important to Magenta Living. In order to manage its stock viability options using net present value (NPV) calculations and neighbourhood insight scoring, they chose in4systems’ Options Appraisal solution in 2015. The focus of the NPV calculations had previously been at a neighbourhood level. A requirement of the Homes and Communities Agency (HCA) is to work at a more granular level.
After over a year of working with this Active Asset Management solution, Magenta Living has benefited from being able to identify any poorly performing properties on an individual level. With the ability to carry out financial analyses, the findings can be incorporated into their strategy, helping them to make more informed and evidenced investment decisions, in line with HCA requirements. If a particular block is performing poorly, an appraisal can be undertaken to analyse the effects of selling the properties or converting to market rent or even demolishing and rebuilding. Similarly, they can identify, for example, that areas that are performing well may have higher management costs.
Magenta Living is very pleased with what they have achieved through this solution. The ability to compare different scenarios for the same group of properties is key to decision making in regards to their stock. This approach has helped the organisation to set targets for themselves, based on their findings. As an existing customer, they have also been able to maximise use of data that they already have stored in Promaster.
Zoe Carmichael, Strategic Asset Manager at Magenta Living commented, “the implementation of the model with an existing system was so much simpler and smoother than a standalone solution, saving time and manual efforts – it’s just about putting the information in!”
Moving forwards, Magenta Living’s next step will be to further embed their use of bespoke neighbourhood insight data and incorporate that into their scenarios, providing a holistic approach to asset management.