Corporate Real Estate Ownership and the Market for Sale and Leasebacks in Finland
Abstract
The aim of this study was to gather new information on corporate real estate (CRE) ownership, and evaluate the market for real estate sale and leasebacks (SLB) in Finland. The property ownership and related ratios of corporations listed in the HEX main list were investigated. These ratios were then compared with the respective figures in other countries. In addition, the development of the Finnish SLB market was illustrated by gathering an indicative list of the major SLBs in Finland during the past four years.
This study found out that the real estate assets to total assets and owner-occupation ratios are on a somewhat lower level in Finland than in the UK and other Western European countries. Reasons for this might be, for instance, that land prices are much lower in Finnish cities than in major European centres. Short-term rental agreements traditionally used in Finland can also have an effect on these figures. However, the ratios in the US are lower than in our Finnish sample. The eacurrent real estate assets to total assets ratios and owner-occupation ratios in major European countries seem to be on the same level with the figures over 10 years ago in the US. Thus, we might expect the current trend of decreasing corporate property ownership to continue in Europe in the future.
Moreover, the sample of HEX-30 corporations revealed a clear decrease in real estate assets to total assets ratios between the years 2000-2003. There seems to be a constant flow of single asset SLBs in Finland, which should also continue in the future. In addition, there has been a significant increase in the share of foreign investors providing SLB finance on the Finnish market.
This study found out that the real estate assets to total assets and owner-occupation ratios are on a somewhat lower level in Finland than in the UK and other Western European countries. Reasons for this might be, for instance, that land prices are much lower in Finnish cities than in major European centres. Short-term rental agreements traditionally used in Finland can also have an effect on these figures. However, the ratios in the US are lower than in our Finnish sample. The eacurrent real estate assets to total assets ratios and owner-occupation ratios in major European countries seem to be on the same level with the figures over 10 years ago in the US. Thus, we might expect the current trend of decreasing corporate property ownership to continue in Europe in the future.
Moreover, the sample of HEX-30 corporations revealed a clear decrease in real estate assets to total assets ratios between the years 2000-2003. There seems to be a constant flow of single asset SLBs in Finland, which should also continue in the future. In addition, there has been a significant increase in the share of foreign investors providing SLB finance on the Finnish market.
Keywords
Corporate real estate, sale and leaseback, real estate investment, Finland