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Fiscal Business Model

December 14, 2020  /  By admin

If the pandemic has taught the global economy anything, it is that collaboration and the ability to be agile will remain important factors when considering how to run a successful business. While previous models have been built on attempts to monopolize profits with little thought to other stakeholders, the end user or the environment, there has been a shift in demand towards public private partnerships that seek to transparently support one another, while providing a useful output as an end result. In the case of building residential communities, there is arguably no better example of how this can work in everyone’s favour, something which Dubai-based APIO believes it has found the solution.

 

 

Having recently launched its latest modular housing solution which targets residential development opportunities of between 250 – 1000 units, APIO’s formula is one of collaboration that stands to not only benefit its partners, but also the environment while simultaneously providing a bespoke housing solution that is financially accessible to end users.

 

By solving some of the prevailing issues surrounding cost within the construction process, APIO turned to a modular solution to better control its material and logistical costs, resulting in a lower initial outlay. In sourcing its own financing to complete the construction phase of the project, its model works on a collaboration between local councils or landowners, who effectively supply the land on which the development is built. No funds are required to change hands until the development is complete, after which the council or landowner can choose to either settle in cash or pay on a lease basis for a set period. As a third option, APIO also offers to acquire a set number of units, while collaborating with an RSL for the remaining units, thereby requiring no cash to exchange hands at all. The ultimate benefit of this arrangement means a no-risk deal for either councils or landowners as they retain the full ownership of their land throughout. Not only does this model provide a viable solution to the UK’s current housing demands, it also allows for new communities to be tailored to the post-pandemic economy, for example, by incorporating more ‘work-from-home’ offices into the design of houses or by leveraging the latest technology to generate electricity thereby reducing operational cost, or by integrating micro-farms into the masterplan. Not only is this a clear win for authorities, landowners and end-users, but also the environment as the entire process benefits from a significantly lower carbon footprint.

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Derived from the Latin word meaning, ‘to bind’, APIO fastens the essential elements of the construction process to deliver a new standard in sustainable, modular housing, while reaching out to meet the UK’s current demand for new residential communities

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