We can help through the entire process from A to Z, from Asset Map to the development of assets generating the maximum return to the benefit of society as a whole

Transparency

Transparency and communication about the benefits of a more efficient public financial and asset management starts with an Asset in order to uncover the hidden assets. Ultimately, the aim is to achieve a public disclosure as if the portfolio was a listed company, using international accounting standards according to International Financial Reporting Standards (IFRS), as done by Solidium, the Finnish National Wealth Fund  

Asset map

The Asset Map could be used as a feasibility study to gain a better understanding of the potential value and revenues generated from better management of public assets. 

The City of Boston can serve as an example of how this works and is described in the IMF Finance & Development-Magazine.

The simple data sets required for producing an Asset Map of the real estate portfolio, can be best understood from the attached Boston-presentation and the underlying data sheets in this link.

Portfolio overview

Publishing a Portfolio Overview, outlining the value and yield of the total portfolio, could help create awareness and generate public support for professionalizing the management of the portfolio. Since this simple document is not formally audited, it can be finalized in a few months on the back of the Asset Map, as was done in Lithuania, Ukraine and Greece.

Developing Public Assets

Governments around the world face pressure on their finances as well as a need to diversify their economies. By reassessing the potential of the commercial assets on their balance sheet, not the least real estate, they have the opportunity to bring about transformative change. Government in Asia and Europe has experimented with Public Wealth funds for more than a century. Sweden transformed its economy by actively managing its public assets, on the back of the crisis in the 1990’s. Proper use of public commercial assets has been a core component of Singapore’s strategy to move the economy from developing to developed status in a single generation.

Independent Institution

The key to unlocking public wealth lies in separating the management of public commercial assets from policymaking, and of ownership from regulatory functions in an independent institution – a Public Wealth Fund.  

The Public Wealth Fund

Consolidating the commercial portfolio within a proper governance structure will help minimize fiscal risk and fully delegate financial responsibility and accountability to an independent institution

An independent holding company at arms-length from short-term political interference, will allow government to focus on the wider economic issues by fully delegating the management of the commercial portfolio to a professional management such as ÖBAG, the Austrian National Wealth Fund or MTR, the Urban Wealth Fund.

The initial setting up of a public wealth fund is most often a 6-month process, including the development of a business plan, recommendations for the structure and assets to be included, a fund strategy, an operating model, and governance

Other international Examples

Professional management of public Wealth - International examples
  • Temasek – Singapore National Wealth Fund
  • MTR – Hong Kong railway operator and real estate developer
  • Solidium -Finland National Wealth Fund 
  • Senate– Finnish government real estate holding company
  • Central Huijin Investment  Chinese state-owned bank holding company
  • SCIC – Vietnamese National Wealth Fund
  • ÖBAG – Austrian National Wealth Fund
  • BIG – Austrian government real estate holding company
  • HCAP – Hellenic National Wealth Fund
  • ETAD – Hellenic government real estate holding company
  • London Continental Railways UK Ministry of Transport real estate development company
  • The Crown Estate – UK government real estate holding company
  • Hafen City Hamburg – City of Hamburg Urban Wealth Fund
  • By & Havn – City of Copenhagen Urban Wealth Fund
  • Vasakronan – Swedish government real estate development company
  • Jernhusen – Swedish Railway real estate development company
  • Vasallen – Real estate development company for the Swedish Ministry of Defence
  • Locum – Real estate developer for Stockholm County hospitals
  • Akademiska Hus – Real estate holding company for Swedish Ministry of Education
  • Stockholm Stadshus AB – Stockholm Urban Wealth Fund

Singapore National Wealth Fund

Hong Kong railway operator and
real estate developer

Finland National Wealth Fund

Finnish government real estate holding company

Central Hujin Investment

Chinese state-owned bank holding company

Vietnamese National Wealth Fund

Austrian National Wealth Fund

Austrian government real estate holding company

Hellenic government real estate holding company

Hellenic National Wealth Fund

UK Ministry of Transport real estate
development company

UK government real estate holding company

City of Hamburg Urban Wealth Fund

City of Copenhagen Urban Wealth Fund

Swedish Railway real estate development company

Swedish government real estate
development company

Real estate developer for Stockholm County hospitals

Real estate development company for the
Swedish Ministry of Defence

Real estate holding company for Swedish
Ministry of Education

City of Stockholm Urban Wealth Fund

“The monetization of these under-exploited real commercial public assets will likely require considerable innovation in capital markets and investment banking“

Willem Buiter, Chief Economist Citi Group