Institute for Federal Real Estate (Germany)
Encyclopedia
The Institute for Federal Real Estate (in , abbreviated BImA) is a government agency
in Germany
that provides federal
government entities with real estate
services. It functions as a landlord
in the government system of internal rent—a commercially based model for managing government real estate. The institute provides services such as renting
space, facility management
and real estate development
. The institute itself owns a major proportion of the property it manages, and is one of the largest owners of real estate in Germany. It is estimated that within 2011, the Institute for Federal Real Estate will—due to property transfers—own and manage nearly all real estate used by the federal government of Germany.
The Institute for Federal Real Estate was established via law on on January 1, 2005. It succeeded the Federal Property Administration , which was dismantled, and from which tasks and staff were transferred. At the same time, the Federal Forests Administration was integrated into the institute as the federal forests division.
of the type , i.e. a public-law institute. It has approximately 5 800 employees at 120 different locations in Germany. The institute functions under the legal and supervisory control of the Federal Ministry of Finance. The top management consists of a 3-member board of directors
, which is assisted by an advisory 10-member board of governors
.
, federal forests, administrative tasks, portfolio management
and sales.
. As Germany is a member of NATO, there are foreign military forces permanently stationed in the country, which require space for their activities. The administrative tasks division provides both these foreign forces and the federal armed forces with suitable buildings and land, either through procurement
or by leasing
from other real estate owners. The division also provides federal civil servants with housing at market price
s. For this purpose, the Institute for Federal Real Estate has around 100 000 residential housing units, either owned by the institute, or leased from a third party. In addition, the administrative tasks division handles legal matters related to the division of assets due to the German reunification
. It also handles citizens' settlement claims for personal and property damage caused by the military exercise
s of foreign military forces stationed in Germany. In 2008, such compensation payments were estimated to amount to a total of 18 million EUR
.
division procures, manages, and disposes of real estate on behalf of government entities. If the institute is unable to provide the real estate demanded by a government entity, it rents that required property from the private real estate market, and then sublets the property to the government entity. This makes the institute an intermediary
between private sector real estate providers and the federal government.
The division’s real estate management operations include renting, handling invoice
s for services, and executing construction projects. There is also leasing
of residential and other real estate to the private sector, which provides approximately 25% of the total revenue
of the Institute for Federal Real Estate. Such commercial real estate has typically had former military uses, for instance barracks
. A nation-wide SAP ERP
-based real estate management system is used for the commercial activities.
, open land and waterway
s owned by the federal government of Germany and by third parties. The land managed by the division is used for forestry
, as nature reserve
s, and in part for agriculture
. In 2008, the Federal Forests division managed forest areas covering 360 000 hectare
s and open land areas covering 247 000 hectares, which in total is approximately 1.7% of the area of Germany, making the Institute for Federal Real Estate one of the largest managers of land in Germany. Approximately half of this land is used by the federal armed forces , for instance as training areas, and as protective barriers for civilian population adjacent to military installations.
, land parcellation
, site development, and by obtaining building permits.
, land, military installations and culturally significant buildings. The Institute for Federal Real Estate considers the division's specialty to be the marketing
of military areas that have been used by the armed forces of Germany (Bundeswehr
) and foreign military forces. The division's long-term aim is to dispose about 30 000 properties, by selling around 3 000 annually. The properties sold are often subject to follow-up investments, such as converting former military areas into residential estates and recreational facilities. The Institute for Federal Real Estate does not by itself engage in such real estate development
, but rather works together with state authorities
, local authorities and investors. The revenue generated by the sales division accounts for around 50% of the total revenue generated.
of the government real estate stock owned by the Institute for Federal Real Estate was approximately 10 billion euro
s. The total real estate stock included:
Examples of buildings and land partially or fully owned at some point in time by the Institute for Federal Real Estate include:
Government agency
A government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...
in Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
that provides federal
States of Germany
Germany is made up of sixteen which are partly sovereign constituent states of the Federal Republic of Germany. Land literally translates as "country", and constitutionally speaking, they are constituent countries...
government entities with real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
services. It functions as a landlord
Landlord
A landlord is the owner of a house, apartment, condominium, or real estate which is rented or leased to an individual or business, who is called a tenant . When a juristic person is in this position, the term landlord is used. Other terms include lessor and owner...
in the government system of internal rent—a commercially based model for managing government real estate. The institute provides services such as renting
Renting
Renting is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership from landowners...
space, facility management
Facility management
Facility management is an interdisciplinary field primarily devoted to the maintenance and care of commercial or institutional buildings, such as hospitals, hotels, office complexes, arenas, schools or convention centers...
and real estate development
Real estate development
Real estate development, or Property Development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others...
. The institute itself owns a major proportion of the property it manages, and is one of the largest owners of real estate in Germany. It is estimated that within 2011, the Institute for Federal Real Estate will—due to property transfers—own and manage nearly all real estate used by the federal government of Germany.
The Institute for Federal Real Estate was established via law on on January 1, 2005. It succeeded the Federal Property Administration , which was dismantled, and from which tasks and staff were transferred. At the same time, the Federal Forests Administration was integrated into the institute as the federal forests division.
Organization
The Institute for Federal Real Estate is a legal entityLegal personality
Legal personality is the characteristic of a non-human entity regarded by law to have the status of a person....
of the type , i.e. a public-law institute. It has approximately 5 800 employees at 120 different locations in Germany. The institute functions under the legal and supervisory control of the Federal Ministry of Finance. The top management consists of a 3-member board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
, which is assisted by an advisory 10-member board of governors
Board of governors
Board of governors is a term sometimes applied to the board of directors of a public entity or non-profit organization.Many public institutions, such as public universities, are government-owned corporations. The British Broadcasting Corporation was managed by a board of governors, though this role...
.
Principal activities
Five of the nine divisions are responsible for the principal activities of the Institute for Federal Real Estate: facility managementFacility management
Facility management is an interdisciplinary field primarily devoted to the maintenance and care of commercial or institutional buildings, such as hospitals, hotels, office complexes, arenas, schools or convention centers...
, federal forests, administrative tasks, portfolio management
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
and sales.
Administrative tasks
The administrative tasks division provides various property-related services that are in the public interestPublic interest
The public interest refers to the "common well-being" or "general welfare." The public interest is central to policy debates, politics, democracy and the nature of government itself...
. As Germany is a member of NATO, there are foreign military forces permanently stationed in the country, which require space for their activities. The administrative tasks division provides both these foreign forces and the federal armed forces with suitable buildings and land, either through procurement
Procurement
Procurement is the acquisition of goods or services. It is favourable that the goods/services are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location...
or by leasing
Leasing
Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments....
from other real estate owners. The division also provides federal civil servants with housing at market price
Market price
In economics, market price is the economic price for which a good or service is offered in the marketplace. It is of interest mainly in the study of microeconomics...
s. For this purpose, the Institute for Federal Real Estate has around 100 000 residential housing units, either owned by the institute, or leased from a third party. In addition, the administrative tasks division handles legal matters related to the division of assets due to the German reunification
German reunification
German reunification was the process in 1990 in which the German Democratic Republic joined the Federal Republic of Germany , and when Berlin reunited into a single city, as provided by its then Grundgesetz constitution Article 23. The start of this process is commonly referred by Germans as die...
. It also handles citizens' settlement claims for personal and property damage caused by the military exercise
Military exercise
A military exercise is the employment of military resources in training for military operations, either exploring the effects of warfare or testing strategies without actual combat...
s of foreign military forces stationed in Germany. In 2008, such compensation payments were estimated to amount to a total of 18 million EUR
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
.
Facility management
The facility managementFacility management
Facility management is an interdisciplinary field primarily devoted to the maintenance and care of commercial or institutional buildings, such as hospitals, hotels, office complexes, arenas, schools or convention centers...
division procures, manages, and disposes of real estate on behalf of government entities. If the institute is unable to provide the real estate demanded by a government entity, it rents that required property from the private real estate market, and then sublets the property to the government entity. This makes the institute an intermediary
Intermediary
An intermediary is a third party that offers intermediation services between two trading parties. The intermediary acts as a conduit for goods or services offered by a supplier to a consumer...
between private sector real estate providers and the federal government.
The division’s real estate management operations include renting, handling invoice
Invoice
An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms...
s for services, and executing construction projects. There is also leasing
Leasing
Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments....
of residential and other real estate to the private sector, which provides approximately 25% of the total revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
of the Institute for Federal Real Estate. Such commercial real estate has typically had former military uses, for instance barracks
Barracks
Barracks are specialised buildings for permanent military accommodation; the word may apply to separate housing blocks or to complete complexes. Their main object is to separate soldiers from the civilian population and reinforce discipline, training and esprit de corps. They were sometimes called...
. A nation-wide SAP ERP
SAP ERP
The SAP ERP application is an integrated enterprise resource planning software manufactured by SAP AG that targets business software requirements of midsize and large organizations in all industries and sectors...
-based real estate management system is used for the commercial activities.
Federal forests
The federal forests division manages and provides services related to woodlandWoodland
Ecologically, a woodland is a low-density forest forming open habitats with plenty of sunlight and limited shade. Woodlands may support an understory of shrubs and herbaceous plants including grasses. Woodland may form a transition to shrubland under drier conditions or during early stages of...
, open land and waterway
Waterway
A waterway is any navigable body of water. Waterways can include rivers, lakes, seas, oceans, and canals. In order for a waterway to be navigable, it must meet several criteria:...
s owned by the federal government of Germany and by third parties. The land managed by the division is used for forestry
Forestry
Forestry is the interdisciplinary profession embracing the science, art, and craft of creating, managing, using, and conserving forests and associated resources in a sustainable manner to meet desired goals, needs, and values for human benefit. Forestry is practiced in plantations and natural stands...
, as nature reserve
Nature reserve
A nature reserve is a protected area of importance for wildlife, flora, fauna or features of geological or other special interest, which is reserved and managed for conservation and to provide special opportunities for study or research...
s, and in part for agriculture
Agriculture
Agriculture is the cultivation of animals, plants, fungi and other life forms for food, fiber, and other products used to sustain life. Agriculture was the key implement in the rise of sedentary human civilization, whereby farming of domesticated species created food surpluses that nurtured the...
. In 2008, the Federal Forests division managed forest areas covering 360 000 hectare
Hectare
The hectare is a metric unit of area defined as 10,000 square metres , and primarily used in the measurement of land. In 1795, when the metric system was introduced, the are was defined as being 100 square metres and the hectare was thus 100 ares or 1/100 km2...
s and open land areas covering 247 000 hectares, which in total is approximately 1.7% of the area of Germany, making the Institute for Federal Real Estate one of the largest managers of land in Germany. Approximately half of this land is used by the federal armed forces , for instance as training areas, and as protective barriers for civilian population adjacent to military installations.
Portfolio management
The portfolio management division analyses the property assets of the Institute for Federal Real Estate, and is responsible for evaluating their economic viability. The division makes annual investment decisions, and also prepares a portfolio of sales. It adds economic value to the properties being sold through deciding on demolitionDemolition
Demolition is the tearing-down of buildings and other structures, the opposite of construction. Demolition contrasts with deconstruction, which involves taking a building apart while carefully preserving valuable elements for re-use....
, land parcellation
Subdivision (land)
Subdivision is the act of dividing land into pieces that are easier to sell or otherwise develop, usually via a plat. The former single piece as a whole is then known in the United States as a subdivision...
, site development, and by obtaining building permits.
Sales
The sales division is responsible for commercially selling real estate that the federal government no longer requires. This includes residential property, commercial propertyCommercial property
The term commercial property refers to buildings or land intended to generate a profit, either from capital gain or rental income.-Definition:...
, land, military installations and culturally significant buildings. The Institute for Federal Real Estate considers the division's specialty to be the marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
of military areas that have been used by the armed forces of Germany (Bundeswehr
Bundeswehr
The Bundeswehr consists of the unified armed forces of Germany and their civil administration and procurement authorities...
) and foreign military forces. The division's long-term aim is to dispose about 30 000 properties, by selling around 3 000 annually. The properties sold are often subject to follow-up investments, such as converting former military areas into residential estates and recreational facilities. The Institute for Federal Real Estate does not by itself engage in such real estate development
Real estate development
Real estate development, or Property Development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others...
, but rather works together with state authorities
States of Germany
Germany is made up of sixteen which are partly sovereign constituent states of the Federal Republic of Germany. Land literally translates as "country", and constitutionally speaking, they are constituent countries...
, local authorities and investors. The revenue generated by the sales division accounts for around 50% of the total revenue generated.
Real estate stock
In 2005, the book valueBook value
In accounting, book value or carrying value is the value of an asset according to its balance sheet account balance. For assets, the value is based on the original cost of the asset less any depreciation, amortization or Impairment costs made against the asset. Traditionally, a company's book value...
of the government real estate stock owned by the Institute for Federal Real Estate was approximately 10 billion euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
s. The total real estate stock included:
- 300 000 hectareHectareThe hectare is a metric unit of area defined as 10,000 square metres , and primarily used in the measurement of land. In 1795, when the metric system was introduced, the are was defined as being 100 square metres and the hectare was thus 100 ares or 1/100 km2...
s of land - 50 000 buildings
Examples of buildings and land partially or fully owned at some point in time by the Institute for Federal Real Estate include:
- Berlin Tempelhof Airport
- Vogelsang CastleOrdensburg VogelsangOrdensburg Vogelsang is a former national socialist estate placed at the former military training area in the national park Eifel in North Rhine-Westphalia. The landmarked and completely preserved estate was used by the National Socialists between 1936 and 1939 as an educational centre for future...
- LanglütjenLanglütjenLanglütjen is the name of the two uninhabited artificial islands created in the 19th century, Langlütjen I and Langlütjen II, in the north off the coast of the district Wesermarsch in Lower Saxony, Germany. The islands are administered by the town of Nordenham...
- HeligolandHeligolandHeligoland is a small German archipelago in the North Sea.Formerly Danish and British possessions, the islands are located in the Heligoland Bight in the south-eastern corner of the North Sea...
External links
- Bundesanstalt für Immobilienaufgaben — Official website (in German)