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RPG Real Estate: Revitalizing Socially Excluded Localities

RPG Real Estate is undertaking a comprehensive approach to revitalize socially excluded localities by renovating residential buildings, addressing social issues, and fostering community development. With over 44,000 apartments in 5,000 buildings across 27 towns in the Moravian-Silesian Region, RPG Real Estate aims to improve these areas to attract new residents and combat problems such as high vacancy rates, reputation issues, crime, and poor living conditions.

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RPG Real Estate: Revitalizing Socially Excluded Localities

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  1. Socially Excluded Localities: RPG Real Estate Approach

  2. Residential Portfolio of RPG Real Estate • >44 000 apartments in 5 000 buildings • Locations in 27 towns (Moravian-Silesian Region) • Average age of buildings: 54 years • Occupancy rate: 98 percents • >100 000 tenants

  3. Socially Excluded Localities • Approx. 6 000 RPG RE flats in socially excluded localities • Problemswith assets value destruction, bad debts, no returnable investments, high vacancy rate – not attractive to newcomers, • antisocial /criminal behaviour (drugs), bad neighbourhood reputation, security problems

  4. Pilot Project Liščina

  5. Pilot Project Liščina:Fact Sheet • 123 flats: 84 flats rented; 39 flats empty; appr. 250 tenants (appr. 90% Romanies*, all socially and economically excluded) • 45 % households delayed in rent payment! • Average rent in 2010: CZK 46,05 per m2 • Civic association Vzájemné soužití actively involved as of 1997 • Main problems: high unemployment (appr. 70 %*), low level of education, grey economy, criminal behaviour, drugs, debts, loans, untidiness • Test site for all RPG RE revitalization/social inclusion projects („Self-Help“, housekeepers, tenant-funded repair program) • * „Popis sociálně vyloučených romských lokalit v regionu Ostravska“, Agentura pro sociální začleňování, 2010

  6. Pilot Project Liščina:Local Partnership established in 2008 • Municipality: Slezská Ostrava • NGO: Vzájemné soužití • Owner of the houses: RPG Real Estate • School: Elementary School ZŠ Škrobálkova • State: Agency for Social Inclusion, Office of the Government of the Czech Republic • Police of the Czech Republic • OKD Foundation

  7. Pilot Project Liščina: Time Management 2009 – 2010

  8. Pilot Project Liščina: Self-Help Program

  9. Pilot Project Liščina: Tenant-FundedRepairProgram May 2010 August 2010

  10. Pilot Project Liščina:Building Community Working together Playing together Celebrating together

  11. Pilot Project Liščina April 2009 August 2010

  12. Revitalization of 8 socially excluded localities Orlová – Poruba Slezská Ostrava – Liščina Slezská Ostrava – Kunčičky Horní Suchá Ostrava – Radvanice Karviná 6 – Nové Město Havířov – Šumbark Prostřední Suchá Total investments: CZK 425 000 000

  13. Slezská Ostrava – Kunčičky Number of flats: 493 Investments: CZK 76 mil.

  14. Havířov – Šumbark Number of flats: 520 Investments: CZK 64 mil. Foto opravené

  15. Karviná 6 - Nové Město Number of flats: 1 135 Investments: CZK 176 mil. Foto opravené Foto opravené

  16. Key Challenges

  17. Re-applicable Tools

  18. Sustainability? Identified Threats • Crime and fear as a consequence of the drug business • Passivity of police partially due to restricted budget – no or low police presence in the localities; excuses like „we are monitoring situation, we are waiting for a big fish“ • No newcomers due to negative reputation of the excluded areas • Property devastation – no further investments = „no future“ • Budget cuts in state social support – increasing debts leading to evictions

  19. Ongoing Partnership – Condition of Success

  20. RPG Real Estate • Stanislav Svoboda • Government Affairs Director • ssvoboda@rpgre.eu

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