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Optimised management for the development of extraordinary public properties

Benedetto Manganelli (School of Engineering, University of Basilicata, Potenza, Italy)
Francesco Tajani (Department of Civil Engineering, University of Salerno, Fisciano, Italy)

Journal of Property Investment & Finance

ISSN: 1463-578X

Article publication date: 25 February 2014

505

Abstract

Purpose

This paper aims to propose a management model of public assets within public-private partnerships which can be applied to properties subject to a possible requalification through the redevelopment and/or modification of the intended use.

Design/methodology/approach

The logic developed is described by an algorithm which borrows the mathematical tools of Operations Research to identify the solution that maximises the utility functions of the parties related to the requalification and management of a public property. The unknowns of the model are the price and concession period, while the constraints reflect the specific and reciprocal conveniences of the actors involved.

Findings

The benefits for the private investor are a reduction of the business risk, related to the lower financial outlay required by the investment, and therefore easier access to credit from banks. For the public administration, an increase in the demand of the property offered, savings in the property management costs, along with the preservation of public property. This aspect of no small importance where there is the fear of breaking up public property which local communities attach a high cultural and historic value.

Practical implications

This leads to a logical support to public administrations involved in the requalification of property assets.

Originality/value

This paper presents a strategic approach with long-term prospects, which interprets in a different way a pure concession model, which has a greater flexibility and articulation and also enriches the framework of the projects (public-private) considered necessary for the requalification of public property as well as possible urban transformation projects.

Keywords

Acknowledgements

The paper is to be attributed in equal parts to the two authors.

Citation

Manganelli, B. and Tajani, F. (2014), "Optimised management for the development of extraordinary public properties", Journal of Property Investment & Finance, Vol. 32 No. 2, pp. 187-201. https://doi.org/10.1108/JPIF-05-2013-0034

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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