Transcript Slide 1

Renovating a Legacy: the Miller Estate
Teresa Zolnierkiewicz, head of philanthropy
ANZ Global Wealth and Private Banking
July 2013
Governance structure – ANZ Trustees
ANZ Divisional Line Manager
Courts
• State Trustee Companies Act
• State Trustee Act
• Common Law Obligations
Board Sub-committees
•Managed Investments Compliance
Committee
• Audit and Risk Committee
•Grants Approvals Committee
ANZ Group & Divisional Risk &
Compliance
• Oversight ANZ Trustees
•Operational Risk Measurement &
Management Framework
• Compliance Framework
Assurance Functions at ANZ
Trustees
• QA Testing Framework
• Incident Management
• Complaints Management
• Business Continuity Plan
• Disaster Recovery Plan
• Obligations Registers & Signoffs
• Enterprise Risk Profile
ANZT Regulatory Obligations
ASIC - AFSL Corporations Act
ASX - Settlement Rules
ATO - Income Tax Assessment Act
ACNC - ACNC Act
ANZ Group Obligations
• APRA
• AUSTRAC
• Privacy Commissioner
Responsible Managers
ANZ Trustees Board
Audit
• ANZ Internal Audit
• External Audit
Managing Director
ANZ Group Policies (General)
Managers & Staff
ANZ Trustees-Specific Policies
ANZ Trustees Meeting &
Committee Framework
Overview
• Management Meeting Suite
• Private Company Oversight
Committee
• Investment Forums
• Other Business Forums
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ANZ Product Management
Policy Frameworks &
Structures
•Various Wealth Product and
Governance Committees
Outline of this case study
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1914: the genesis of social investment
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1914 – 2007: the Alexander Miller Estate – doing good
How the Estate operated:
• Held and purchased a Victorian regional property portfolio - by
2007 held a significant property portfolio of around $20m
• Directly rented these properties as affordable housing
for disadvantaged people – regional, elderly poor
• By 2000 it had 17 property sites & 173 residents
• Housing units dated mostly from 1920s-1930s
• Some funds (<$10m) were held in an equities portfolio
to generate additional income
• Essential maintenance was barely covered by
rents – supplemented by income
• Upgrades and capital works were not covered in this model - could
be sought by applying for grants – however, this was problematic
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1914 – 2007: the Alexander Miller Estate – doing good
Pressure for change:
• Model was not sustainable
• Trustees were in effect running an operating
charity on a short term time horizon – not a core
skill set of any the 3 trustees
• The changing needs of the residents demanded a
different solution – one that was consistent with
Miller’s vision
• There were risks in the changing nature of
residents – putting pressure on the model
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2007: the Miller Estate – the process of creating change
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2007-2013: dependencies - qualities needed to make change work
Estate Trustees:
• Chairman: Ross Scholes-Robertson
• ANZ Trustees
• Gary Miller
ANZ Trustees:
• Senior Legal Counsel
• Company Rep’ve
• Head of Philanthropy
• Investment Mgrs
• Philanthropy Manager
• Board of Directors
• Middle Office
• Back Office
Miller Residents:
• 174 Residents
• 12 Volunteers
• 17 Sites
Govt/Other:
• Housing
Consultant
• Tender Process
• Solicitors
• Office of Housing
• Attorney-General
• Supreme Court
• RHA –
Wintringham
CEO
• Project Mgr
• Architect
• Board of
Directors
Environment:
External deadlines
Property market movements
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Nation Building & opportunities
2011 newly constructed homes
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2012: the Miller Estate – the transformation
THEN
• 17 sites
• 173 residents
• Vacancies
• Adequate homes from 1920s/1930s
in need of upgrades
• Local volunteers provide some
monitoring
• Rudimentary gardens and
landscaping
NOW
• 12 sites (5 sold or in process)
• 160 residents
• No vacancies
• Brand new purpose built or significantly
renovated
• Wintringham provides supervision and care
with potential to transition
• Outdoor spaces developed including on
some sites men’s sheds, other communal
spaces such as bbqs, lake, all new homes
with personal veranda/balcony
• Trustees as landlords • Trustees governing the operations of the
Estate/oversee Wintringham as leasee
• Trustees monitor impact and continue to
consider potential for future developments
and or property sales/investments
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2013: Miller Homes - the change
New construction [completed]
Renovation [completed]
Shepparton - Nation Bldg: construction 36
units on existing land. [August 2011]
Geelong (Belmont) - State Govt: renovation 12
units. [Dec 2011]
Ballarat-State - State Govt: construction 14
units [Aug 2011]
Maryborough - State Govt: renovation 12 units
on existing site. [Aug 2011]
Geelong (Manifold Heights)-Nation Bldg:
construction 14 units (6 being addn’l build) on
existing site. [July 2011]
Euroa - State Govt: extensive renovation 8
units on existing site. [Oct 2011]
Castlemaine -State Govt construction 9 units
on existing site. [Jan 2012]
St Arnaud - State Govt: renovation 6 units &
construction 5 new on existing site. [August
2011]
Geelong (Highton) - Nation Building: construction 34 units on land specifically purchased by
Miller Estate [Aug 2011]
Benalla - State Govt construction 109 units on existing site. [Mar 2012]
Total government investment: $33million
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A replicable model
Private Donor
Gov’t
Funding
Charitable Trust
provides legal structure
takes liability &
responsibility
Registered Housing Agency
provides tenancy &
property management &
project management services
Building/construction
MODEL 1: Miller Estate
(Aust)
MODEL 2: Community
Land Trust (UK)
Donors of land or funds
Finance
institution
Tenants
Community Land Trust
provides legal structure
takes liability &
responsibility
Registered Housing Agency
provides tenancy &
property management &
project management services
Building/construction
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Tenants
A replicable model
GOVERNANCE/
TRUSTEESHIP
GOVERNANCE/
TRUSTEESHIP
INVESTMENTS
IMPACT
GRANTING
ASSETS
IMPACT
ASSETS
REALISED POTENTIAL
TRADITIONAL
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What worked well and what did not
• Most of the people who started the change,
‘finished’ the change
• Expert advice from relevant parties, eg. ANZ
Trustees legal counsel, smooths the way
• The complexity of the task was not totally
understood at the outset
• A new model means there are some questions
no-one can currently answer easily, eg.
property valuation
• Different parties frequently had different sense
of urgency in the process (perpetuity vs now)
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Lessons
• Every change takes courage, a leap of faith,
and a champion
• Focus on what you are good at, and get expert
help for the rest
• Managing and deepening relationships is vital
and is everyone’s responsibility
• Relationships will change through the course
of the process
• Share all the responsibilities – everyone with
a stake has an important contribution to the process
• You cannot estimate when you will finish the change, and it always
takes longer than you expect – this took since 2007 and not complete
• There will always be roadblocks. If things get tough you need to focus
on the objective
• Trust between parties is important
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Alexander Miller Estate: Questions
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Contact Details
For further information about ANZ Trustees, please refer to the following:
ANZ Website links:
• What do we do?
http://www.anz.com/personal/private-bank-trustees/trustees/
• Philanthropy
http://www.anz.com/personal/private-bank-trustees/trustees/philanthropy/
• Investment Management
http://www.anz.com/personal/private-bank-trustees/trustees/investmentmanagement/
• Granting
http://www.anz.com/personal/private-bank-trustees/trustees/granting/
Contact details:
ANZ Trustees direct line: 1800 011 047
Nicole Smith, Senior Business Development Manager, Victoria
e [email protected]
t (03) 8654 0904
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