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Real Estate Privatization: Proceeds up to € 1.5bn

Published: February 16, 2011; 01:03 · (Vindobona)

According to a study, the Austrian government could generate around € 1.5bn from the partial privatization of its real estate company.

Real Estate Privatization: Proceeds up to € 1.5bn / Picture: ©

The business consultancy Ernst & Young calculated the potential proceeds from the sale of the Bundesimmobiliengesellschaft (BIG) at € 1.5bn. The condition is to make a division between marketable and non-marketable properties so as not to sell properties in the areas of debts,  universities, administration and justice. The marketable real estate might be sold in two tranches, writes Ernst & Young.

A significantly higher profit is seen by the Vienna Stock Exchange. According to its own study, up to € 4.26bn could be achieved from the sale of the majority stake. Discrepancies also arise due to internal obligations of BIG to the federal government, which amount to approximately € 700m, but also by retaining a minority share for the Confederation of the marketable BIG in the Ernst & Young model. Privatization is however not currently planned by the government.

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