Bundesimmobiliengesellschaft
Encyclopedia
Bundesimmobiliengesellschaft m.b.H or BIG is a quasi-governmental company in Austria
, which manages Austrian publicly owned
real estate
. BIG is the central provider of space for several public sector
functions such as schools, universities, prisons, courts and police stations. It rents out buildings to the government entities using them, carries out renovations and new investments, and handles sales of buildings and land no longer in use by the public sector.
for Austria’s public sector. The federal
real-estate property had previously been managed by the Federal Buildings Directorate Vienna in the Vienna
province
, and in the other provinces by the Federal Buildings Administrations . The aim was to improve the cost-efficiency of various government departments. The underlying premise for this system of internal rent
was that requiring departments to pay for and account for their usage of buildings would force them to rationalise their use of space and allow surplus space to be put to alternative use or sold.
of the form Gesellschaft mit beschränkter Haftung
, shortly GmbH, which is a form of limited liability company
. The sole owner of BIG is the Republic of Austria, and the company's activities cannot be considered separate from government policy. Any changes in ownership would require a prior amendment to the law by simple majority.
on special-purpose buildings such as educational facilities and prisons. The Austrian government entities—such as ministries and universities—that rent these buildings, account for 98% of BIG:s rental income, Therefore BIG and the Austrian public sector may be inferred to be in a bilateral monopoly
situation with regard to special-purpose buildings. Rents are fixed on a market-like basis, though with adjustments for special-purpose buildings.
of the real estate owned by BIG was approximately 4.15 billion
EUR
. The real estate portfolio consisted of:
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
, which manages Austrian publicly owned
Publicly owned
Publicly owned can refer to:*Community ownership or state ownership*Public company, a company which is permitted to offer its securities for sale to the general public, typically through a stock exchange...
real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
. BIG is the central provider of space for several public sector
Public sector
The public sector, sometimes referred to as the state sector, is a part of the state that deals with either the production, delivery and allocation of goods and services by and for the government or its citizens, whether national, regional or local/municipal.Examples of public sector activity range...
functions such as schools, universities, prisons, courts and police stations. It rents out buildings to the government entities using them, carries out renovations and new investments, and handles sales of buildings and land no longer in use by the public sector.
History
BIG was created by law in 1992, with the objective of centralizing property managementProperty management
Property management is the operation, control of ususally on behalf of an owner, and oversight of commercial, industrial or residential real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its usable life and condition...
for Austria’s public sector. The federal
States of Austria
Austria is a federal republic made up of nine states, known in German as Länder . Since Land is also the German word for a country, the term Bundesländer is often used instead to avoid ambiguity. The Constitution of Austria uses both terms...
real-estate property had previously been managed by the Federal Buildings Directorate Vienna in the Vienna
Vienna
Vienna is the capital and largest city of the Republic of Austria and one of the nine states of Austria. Vienna is Austria's primary city, with a population of about 1.723 million , and is by far the largest city in Austria, as well as its cultural, economic, and political centre...
province
States of Austria
Austria is a federal republic made up of nine states, known in German as Länder . Since Land is also the German word for a country, the term Bundesländer is often used instead to avoid ambiguity. The Constitution of Austria uses both terms...
, and in the other provinces by the Federal Buildings Administrations . The aim was to improve the cost-efficiency of various government departments. The underlying premise for this system of internal rent
Internal rent
Internal rent is a form of transfer pricing where a company owning its own premises forces single departments in that company to pay rent for the real estate they use...
was that requiring departments to pay for and account for their usage of buildings would force them to rationalise their use of space and allow surplus space to be put to alternative use or sold.
Organizational form
BIG is a legal entityLegal personality
Legal personality is the characteristic of a non-human entity regarded by law to have the status of a person....
of the form Gesellschaft mit beschränkter Haftung
Gesellschaft mit beschränkter Haftung
Gesellschaft mit beschränkter Haftung is a type of legal entityvery common in Germany, Austria, Switzerland, and other Central European countries...
, shortly GmbH, which is a form of limited liability company
Limited liability company
A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...
. The sole owner of BIG is the Republic of Austria, and the company's activities cannot be considered separate from government policy. Any changes in ownership would require a prior amendment to the law by simple majority.
Economy and market
Unlike other companies close to the Austrian government, BIG acts on the free real estate market,, but its business activities are restricted to the Republic of Austria. The Austrian government is dependent on BIG, since it has a de facto monopolyMonopoly
A monopoly exists when a specific person or enterprise is the only supplier of a particular commodity...
on special-purpose buildings such as educational facilities and prisons. The Austrian government entities—such as ministries and universities—that rent these buildings, account for 98% of BIG:s rental income, Therefore BIG and the Austrian public sector may be inferred to be in a bilateral monopoly
Bilateral monopoly
In a bilateral monopoly there is both a monopoly and monopsony in the same market.In such, market price and output will be determined by forces like bargaining power of both buyer and seller...
situation with regard to special-purpose buildings. Rents are fixed on a market-like basis, though with adjustments for special-purpose buildings.
Principal activities
BIG engages in:- Rental of properties, particularly for federalStates of AustriaAustria is a federal republic made up of nine states, known in German as Länder . Since Land is also the German word for a country, the term Bundesländer is often used instead to avoid ambiguity. The Constitution of Austria uses both terms...
schools, universities and official buildings. - ConstructionConstructionIn the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
of new buildings and redevelopmentRedevelopmentRedevelopment is any new construction on a site that has pre-existing uses.-Description:Variations on redevelopment include:* Urban infill on vacant parcels that have no existing activity but were previously developed, especially on Brownfield land, such as the redevelopment of an industrial site...
of old properties for rental to federal schools and universities, and as official buildings. - Sales of buildings and land.
- Property managementProperty managementProperty management is the operation, control of ususally on behalf of an owner, and oversight of commercial, industrial or residential real estate as used in its most broad terms. Management indicates a need to be cared for, monitored and accountability given for its usable life and condition...
and maintenanceProperty maintenanceProperty maintenance relates to the upkeep of a property or building and may be a commercial venture through a property maintenance company or a home pastime for example day to day cleaning....
of properties. - Property development and sales of completed projects involving private use.
- Facility managementFacility managementFacility management is an interdisciplinary field primarily devoted to the maintenance and care of commercial or institutional buildings, such as hospitals, hotels, office complexes, arenas, schools or convention centers...
, by agreement with tenants.
Real estate portfolio
In 2008, the book valueBook value
In accounting, book value or carrying value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or Impairment costs made against the asset. Traditionally, a company's book value...
of the real estate owned by BIG was approximately 4.15 billion
1000000000 (number)
1,000,000,000 is the natural number following 999,999,999 and preceding 1,000,000,001.In scientific notation, it is written as 109....
EUR
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
. The real estate portfolio consisted of:
- Schools and universities (70.5%)
- Prisons, police stations and court houses (27%)
- Residential property (2%)
- Other (0.5%)
External links
- Bundesimmobiliengesellschaft — Official website