Interactions between restoration and financial analysis: the case of Cuneo War Wounded House

• Published in: Journal of cultural heritage management and sustainable development 2018-06, Vol.8 (2), p.145-161
• Main Authors: Fabbri, Rita, Gabrielli, Laura, Ruggeri, Aurora Greta
• Format: Article
• Language: English
• Subjects: 20th century; Architecture; Conservation; Cost analysis; Cultural heritage; Cultural resources; Economic analysis; Economics; Efficiency; Energy; Energy conservation; Energy costs; Energy efficiency; Financial analysis; Green buildings; Historic buildings & sites; Historic preservation; Internal rate of return; Life cycle analysis; Life cycle costs; Life cycle engineering; Life cycles; Literature reviews; Restoration; Revenue; Sensitivity analysis; Values
• ISSN: 2044-1266; 2044-1274
• DOI: 10.1108/JCHMSD-05-2017-0026

PurposeThe purpose of this paper is to examine the cross-sectoral collaboration between conservation and economic appraisal, and to process a financial analysis for private owners of a built heritage.Design/methodology/approachThe methodology applied addresses the financial analysis of restoration through a discounted cash flow analysis, together with a life cycle costing. Costs and revenues are both analysed in this paper. Some energy-saving measures are applied to cut running costs and decrease the energy required by the building, using as reference the “Guidelines for improving energy efficiency in cultural heritage” drafted by MiBACT, which considers the respect of restoration principles. In order to increase revenues, part of the building is rented. The attractiveness of the investment opportunity is valued through the calculation of the net present value of cash flows, the payback period and the internal rate of return.FindingsThe paper offers a simple strategy for the planning of cost-revenues, preventively allowing verification if the conservation is economically feasible and if the owners can afford the operation. The strategic planning will give the owners the chance of maintaining the property of their building and achieve a proper restoration on it.Originality/valueThe novelty of the paper is the study of cooperation between conservation and economic valuation, but also the focus on a specific portion of twentieth-century heritage, the war-wounded houses, which represent a widespread patrimony, on which it is not clear how to operate yet.