Public-private partnership in technology specific real estate projects

© 2006 ZIT Zentrum für Innovation und Technologie GmbH. Ein Unternehmen des Wiener Wirtschaftsförderungsfonds. 2

ZIT - Zentrum für Innovation und Technologie Technology Agency of the City of Vienna

A hundred percent affiliate of the VBA (Vienna Business Agency) Founded in 2000

Our mission Establishment of optimal conditions for technological companies Strengthening of the Viennese economy

Staff 15 Person

© 2006 ZIT Zentrum für Innovation und Technologie GmbH. Ein Unternehmen des Wiener Wirtschaftsförderungsfonds. 3

Integrated Technology-Policy

Anual budget of 20 Mio. EUR

ZIT 05+ guidelines with 8 programs• Calls (special R&D

programs)• Vienna Spots of

Excellence• R&D Public• Technology

Networks

FUNDING

Constructing and operating micro level business locations

Thematic adjustment• Life Sciences

(Campus Vienna Biocenter, LS Quarter Poliklinik)

• Media (Media Quarter Marx)

REAL ESTATE SERVICES

Operating jointly utilised infrastructure

Supporting qualification modells

Financing (round-table-discussions)

© 2006 ZIT Zentrum für Innovation und Technologie GmbH. Ein Unternehmen des Wiener Wirtschaftsförderungsfonds. 4

Why do we act within PPP for technological real estate Compensation of market failure (lack of infrastructure/

laboratory capacities) Developing innovative business locations with

surplus value for our target groups Utilisation of VBA real estates Generating benefit possibility to initiate new

projects Bringing private equity into socio-political and RTD-

political desired long-term investments

© 2006 ZIT Zentrum für Innovation und Technologie GmbH. Ein Unternehmen des Wiener Wirtschaftsförderungsfonds. 5

Advantages for the public sector

Generation of a multiplier for public investment (leverage effect)

Bisection of the economic risk Increase of competence Definition of the overall responsibility Shortening of the decision making process Realizing more flexibility compared to public

procurement

© 2006 ZIT Zentrum für Innovation und Technologie GmbH. Ein Unternehmen des Wiener Wirtschaftsförderungsfonds. 6

Advantages for the private sector

Quality increase for thematic positioning of real estate projects

Increase of public attention Public equity capital has a special “charm” Know-how advantage in contact with authorities

and approval procedures Enhanced marketing possibilities

© 2006 ZIT Zentrum für Innovation und Technologie GmbH. Ein Unternehmen des Wiener Wirtschaftsförderungsfonds. 7

Disadvantages

Public partner: Decrease of public influence

Private partner: Some investors assume a lack of

economic efficiency and / or hidden “public interest”

© 2006 ZIT Zentrum für Innovation und Technologie GmbH. Ein Unternehmen des Wiener Wirtschaftsförderungsfonds. 8

Experience in detailCampus Vienna Biocenter Strengthening a Life

Sciences „hot spot“ 67.200 sqm floor space

(lab/office) in whole More than 1.200 scientest from

about 40 nations

ZIT-Projects VBC 2 (4,500 sqm, 11 Mio. €) VBC 3 (7,000 sqm, 17 Mio. €)

ZIT is acting in Development/construction Operating

VBC 2

VBC 3

© 2006 ZIT Zentrum für Innovation und Technologie GmbH. Ein Unternehmen des Wiener Wirtschaftsförderungsfonds. 9

PPP-Model: Vienna Biocenter 2

100 %

Developing / Construction Operating

45 % 55 %

100 %

45 % 55 %

VSM - Vienna Standort Management Ltd.

Vienna Biocenter Construction Ltd.

ZIT Center of Innovation and

Technology

VBA (Vienna Business

Agency)

PRISMA Holding Inc.

ZIT Center of Innovation and

Technology

VBA (Vienna Business

Agency)

PRISMA Holding Inc.

© 2006 ZIT Zentrum für Innovation und Technologie GmbH. Ein Unternehmen des Wiener Wirtschaftsförderungsfonds. 10

Determening Factors of Success

Hard facts Clear legal contracts Exact positioning of the partners Clear allocation of competences and responsibilities Institutionalized information strategy

Soft facts Informal information policy Good “chemistry” between the partners High identification with the project aims on both sides

© 2006 ZIT Zentrum für Innovation und Technologie GmbH. Ein Unternehmen des Wiener Wirtschaftsförderungsfonds. 11

Success

Relating project aims Realised / initiated six projects Total investments nearly 130 million EUR In whole 56,500 sqm newly constructed usable floor space Two objects already sold to international closed property funds Realising yields between 5% and 7% Reserves can be invested in new projects

Relating RTD policy aims Technological specified real estates with focus on synergating

business locations for economic impuls Space for growing companies and growing sectors Networking between scientific institutions and companies Use of synergies, earning surplus value

Thank you for interest!

Contact

Thomas Berndt

ZIT Zentrum für Innovation und

Technologie GmbH

berndt@zit.co.at

www.zit.co.at

Brussels, October 11th, 2006