Real Estate Investor Magazine South Africa February 2015 | Page 55

REI OFFSHORE
REI offshore

Common Swedish definition
for ‘Public Use’ property type

M

SCI has initiated a common definition regarding the ‘Public Use’ property type
in Sweden and together with Datscha, Diligentia, Hemsö, Lönnbacken, Micasa,
Rikshem and Vasakronan will this new definition be adopted when referring to
‘Public Use’ properties in internal and external communication.
The size of the ‘Public Use’ sector in Sweden has varied widely depending on opinion,
and gathering the largest companies with a pronounced interest in owning public use
buildings alongside Vasakronan, the largest active real estate owner in Sweden, giving
the validation needed to set a definition for the whole Swedish market.
“Swedish Public Use property is defined as: “properties in which tax financed tenants
dominate and which are explicit designed for public use. Also included are special
properties for Sweden Trygghetsboende and apartment buildings for elderly people
that are constructed with governmental subsidies.” Examples of properties defined as
‘public use’ are nursing homes, courts, sports facility, schools and hospitals. Standard
office buildings leased to the public sector are excluded.
Christina Gustafsson, Executive Director at MSCI said: “Different definitions of Public
Use buildings currently leads to uncertainty as to what is meant. We are excited to now
be able to see what returns this asset class really has. From 2014 onwards, ‘Public Use’
will be a new segment in IPD’s Swedish databank and will be released with the IPD
Sweden Annual Property Index 2014, which is to be launched at a seminar on the 18th
February 2014.
“We estimate ‘Public Use’ will account for close to 10% of the IPD Swedish Databan