Plenary Lecture
Public-Private Partnerships for Urban Rehabilitation and Sustainable Investments on Special Properties
Professor Francesco Tajani
Department of Science of Civil Engineering and Architecture
Polytechnic of Bari
Italy
E-mail: francescotajani@yahoo.it
Abstract: Urban rehabilitation through the redevelopment of public properties in disuse is among the main issues of the urban policies in the Euro area. The list of these properties is long and includes military garrisons, prisons, industrial areas, hospitals, schools, government offices, railways, religious buildings, electrical substations, warehouses, social housing, etc. In many cases, they are properties that, initially marginal or even outside the perimeter of the city, were incorporated and are currently located in strategic positions for conversion to new functions, characterized by high market values related to the phenomenon of urban rent. In other cases, the properties are located in central areas, characterized by high historical and architectural quality and have a significant size. Since 2008, mainly due to the economic downturn, the alienation of public properties has been characterized by a deadlock. The failure of numerous auctions, almost deserted, has highlighted the difficulties of private investors, related to the sale of complex properties, characterized by considerable sizes, substantial redevelopment costs, with long and uncertain administrative procedures for the change of their intended uses. The worsening of the economic recession, the credit crunch, the current slowdown in the housing market and the fear of a “fire sale” of public assets, have led most investors to assume a waiting attitude and to develop the idea of public assets as resources to be used to achieve strategic objectives. Currently, the tendency in all European countries is to entrust the enhancement of public buildings in disuse to new special entities, in terms of sales to third parties as well as rationalization for the economic management of the property. The use of models of Public-Private Partnership can allow to optimize the phases of realization and management of the projects. Although the case studies of the types of partnerships undoubtedly include the financial aspects, Public-Private Partnerships should be considered an opportunity for the public sector to buy a set of services subject to specific terms and conditions. The solution of Public-Private Partnerships responds to the need to find new forms of financing and introduce specialized skills in the operations of efficient development and management of these properties. In this framework, this research aims to propose a decision support methodology for public and private subjects involved in the valorization of public properties. In particular, the developed model allows the assessment of the financial feasibility of the initiatives, in relation to the corresponding investment risks, the social constraints for the Public Administration and the risk appetite of the private investor.
Brief Biography of the Speaker: Francesco Tajani has been a temporary Professor of “Methods and Techniques of Economic Valuation”, Department of Architecture and Design (“Sapienza” University of Rome, Italy), and of “Appraisal of Cultural Heritage”, Specialization School in “Architectural and Landscape Heritage”, Department of Science of Civil Engineering and Architecture (Polytechnic of Bari, Italy). He holds a PhD degree in Economic Evaluation of Investments and a Master in Urban Planning and Real Estate Market. He is a Member of the Italian Society of Appraisal and Valuation (SIEV) and a Professional Member of the Royal Institution of Chartered Surveyors (RICS). He is author and coauthor of more than fifty published works on various topics, including the study of innovative algorithms as support to real estate appraisal, the evaluation of investments on cultural and environmental assets, the elaboration of models for the activation of regeneration projects on degraded areas and the enhancement of disused buildings, the econometric analysis of the dynamics of real estate prices generated by macroeconomic variables.