Riigi Kinnisvara AS /Estonian State Real Estate Ltd/

Transcription

1 Riigi Kinnisvara AS /Estonian State Real Estate Ltd/ STATE REAL ESTATE MANAGEMENT. ESTONIAN WAY. Kati Kusmin December 2018

2 Riigi Kinnisvara AS Riigi Kinnisvara AS (Estonian State Real Estate Ltd) is a property development and management company Founded in 2001 for the more efficient management of property belonging to the public authorities (central government and its institutions and agencies) 100% state-owned company, shares are managed by the Ministry of Finance Key customers include ministries and subagencies in their area of administration THE ESTONIAN NATIONAL MUSEUM (2016), TARTU

3 Riigi Kinnisvara AS Assets in the value of ~600 million euros Number of employees ~ 240 ISO 9001:2015 quality management and ISO 14001:2015 environmental management certificate Three-star property maintenance certificate issued by Estonian Property Management Association Member of Corporate Social Responsibility Forum, PuRE-net (The Public Real Estate Network) and TWN (The Workplace Network) LÄÄNE COUNTY UPPER SECONDARY SCHOOL (RENOVATED 2013), HAAPSALU

4 The basis of existence of State Real Estate Lower maintenace costs due to economies of scale Increased professionalism in competence center Financial leverage by inclusion of external funds Clearer responsibility and better transparency State institutions can focus on their main functions Centralization and efficient use of state s real estate portfolio

5 Business philosophy EFFICIENCY, TRANSPARENCY, COI MODEL VISION MISSION We create most optimal, efficient and sustainable real estate solution for state as whole, adjusted for specialty needs of state agencies. We provide to the state agencies real estate environment with excellent quality, energy efficiency and the prudent management.

6 COI strategy Activity Model CENTRALISE OPTIMISE INVEST Professional transactions More effective management Overview of portfolio Clarifying needs (state) Proposing options (RKAS) Selling disused assets Entering into lease agreements to ensure agreed costs and quality Investments in long term perspective ensuring best possible quality level

7 Fact Sheet (2017)

8 Structure of the company

9 Functional structure Real estate policy Regulations Standards, norms Objectives, supervision Management results (reporting) Ministry of Finance (incl. information and analysis centre) Information (accounting, reporting, planning, etc.) Financing Centre of Excellence (RKAS) Services Payments Users (ministries, institutions) Services, objects through public procurement Payments Services Payments Service providers (private sector builders, administrators, etc.) Other users (lessees) Other owner (lessor)

10 Challenge from the nature of the business OWNER/FINANCING (Ministry of Finance) objectives, financing, supervision CUSTOMER (state authorities) Who s needs are most important? Who to prefer? Who decides? NEEDS vs POSSIBILITIES ONE STATE, ONE WALLET MY (TAX) MONEY! service, satisfaction objectives, supervision EXECUTOR (RKAS) How to secure customer satisfaction? How to secure sustainable business?

11 Strategic goals The objectives of the strategy of the state s real estate activity (Ministry of Finance, 2007): Ensure the development of the real estate required by the state to the level determined by contemporary requirements in the best possible way. Ensure the comprehensive and coordinated management of the development, administration and maintenance activity of state s real estate and the creation of the essential organisation foundations, legal regulations, information systems and motivation mechanism. Ensure the administration and maintenance of state s real estate in compliance with modern standards and in the most economically effective manner. Ensure that disused real estate is sold in the most effective way for the state. THE JOINT MINISTERIAL BUILDING (2017), PPP PROJECT

12 Key topics in the strategy for Clear and efficient services and processes Sustainable and balanced financial behaviour Satisfied customers Motivated and competent employees

13 Prisons Mission completed New Tallinn Prison complex and detention center Opening December 2018 Investment 100 meur 14 buildings, total net area m2 Places for 1200 prisoners Project length 61monts Viru Prison Y2008 Tartu Prison Y2002

14 State Gymnasiums More efficient school network Project duration Investment capacity ~110 meur Project is financed by Estonian government and European Regional Development Fund 1st State Gymnasium opened Y2012 in Viljandi, today 13 new or reconstructed schools are opened, this fall 3 openings 9 more new schools are under planning, design or construction phase Project Management (planning, desing, construction and procurement) is done by Riigi Kinnisvara AS

15 State House Multi Tenant Office Properties in Smaller Cities Investment programm 27mEUR during cities, 26 buildings mainly reconstruction projects, only 2 new buildings under consideration Optimisation Decrease in total space estimated -28% Vacancy decrease Savings Avoiding unnecessary investments 14.9 meur Decrease in cost savings long term yearly 3 meur Bonus Sale of disused properties +3.7mEUR Mainly change management and communication project

16 Sale of Disused Assets Public sales process Yearly objects sold From apartments and office buildings to manors and even historic sea fortress Patarei sea fortress European architectural heritage, built in 1840 under the orders of Nicholas I Premises covering 4 hectars have had different functions barracks and a prison as well Preliminary estimated sales period st half

17 Operating areas

18 Thank you! Tel