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 ESTATESERVICES 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 detail Campus Vienna Biocenter Strengthening a Life Sciences hot spot sqm floor space (lab/office) in whole More than 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 % Developing / ConstructionOperating 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 Brussels, October 11 th, 2006