Renovating a Legacy: the Miller Estate

1. Renovating a Legacy: the Miller Estate Teresa Zolnierkiewicz, head of philanthropyANZ Global Wealth and Private BankingJuly 2013

2. Governance structure – ANZ Trustees

3. Outline of this case study 1 2 3 4 5

4. 1914: the genesis of social investment

5. 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 housingfor 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 portfolioto generate additional income • Essential maintenance was barely covered byrents – supplemented by income • Upgrades and capital works were not covered in this model - could be sought by applying for grants – however, this was problematic

6. 1914 – 2007: the Alexander Miller Estate – doing good Pressure for change: • Model was not sustainable • Trustees were in effect running an operatingcharity on a short term time horizon – not a coreskill set of any the 3 trustees • The changing needs of the residents demanded adifferent solution – one that was consistent withMiller’s vision • There were risks in the changing nature ofresidents – putting pressure on the model

7. 2007: the Miller Estate – the process of creating change

8. 2007-2013: dependencies - qualities needed to make change work Estate Trustees: • Chairman: Ross Scholes-Robertson • ANZ Trustees • Gary Miller Miller Residents: • 174 Residents • 12 Volunteers • 17 Sites ANZ Trustees: • Senior Legal Counsel • Company Rep’ve • Head of Philanthropy • Investment Mgrs • Philanthropy Manager • Board of Directors • Middle Office • Back Office 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 Nation Building & opportunities

9. 2011 newly constructed homes

10. 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 • Trustees as landlords 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 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

11. 2013: Miller Homes - the change

12. Private Donor Donors of land or funds Registered Housing Agencyprovides tenancy & property management & project management services Tenants Registered Housing Agencyprovides tenancy & property management & project management services Tenants Finance institution Gov’tFunding Community Land Trustprovides legal structuretakes liability &responsibility Charitable Trustprovides legal structuretakes liability &responsibility Building/construction MODEL 1: Miller Estate (Aust) Building/construction MODEL 2: Community Land Trust (UK) A replicable model

13. A replicable model GOVERNANCE/ TRUSTEESHIP GOVERNANCE/ TRUSTEESHIP INVESTMENTS IMPACT IMPACT GRANTING ASSETS ASSETS REALISED POTENTIAL TRADITIONAL

14. 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)

15. Lessons • Every change takes courage, a leap of faith, and a champion • Focus on what you are good at, and get experthelp for the rest • Managing and deepening relationships is vitaland is everyone’s responsibility • Relationships will change through the courseof the process • Share all the responsibilities – everyone witha 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

16. Alexander Miller Estate: Questions

17. 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/ Philanthropyhttp://www.anz.com/personal/private-bank-trustees/trustees/philanthropy/ Investment Managementhttp://www.anz.com/personal/private-bank-trustees/trustees/investment-management/ Grantinghttp://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 Nicole.smith2@anz.com t (03) 8654 0904