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Property investor behaviour: qualitative analysis of a very large transaction

Peter O¨hman (Centre for Research on Economic Relations, Department of Business, Economics and Law, Mid Sweden University, Sundsvall, Sweden)
Bo Söderberg (Institute for Housing and Urban Research, Uppsala University, Gäyle, Sweden)
Stig Westerdahl (Department of Urban Studies, Malmö University, Malmö, Sweden)

Journal of Property Investment & Finance

ISSN: 1463-578X

Article publication date: 20 September 2013

3182

Abstract

Purpose

This explorative case study focuses on property investment decision making from a behavioural perspective at the very microlevel. The study contributes to an understanding of how property investors manage the decision‐making process, including organizational aspects, property valuation, and financial management.

Design/methodology/approach

Applying a qualitative approach, the authors analyse a very large transaction that occurred in the Swedish property market in 2008. In an open bid transaction, properties of Vasakronan Corporation were sold for SEK41.1 billion (€4.3 billion). Managers in both the purchasing company and the consortium making the second highest bid were interviewed. The authors were encouraged to speak freely, but also used an interview guide with a number of themes as well as specific questions.

Findings

The findings reveal the characteristics of two types of property investment decision‐making behaviour with respect to how actors organize the work, use external consultants, value the properties, and secure the financing necessary for a final bid.

Practical implications

Creditors, analysts, and appraisers may benefit from the insight that property investment decision makers can use different approaches in determining their final bids.

Originality/value

The authors use a qualitative empirical approach in analysing an extraordinarily large property transaction from a buyer's point of view and presents detailed information about this transaction as well as general insights into actual behaviour rarely examined in the property investment literature.

Keywords

Citation

O¨hman, P., Söderberg, B. and Westerdahl, S. (2013), "Property investor behaviour: qualitative analysis of a very large transaction", Journal of Property Investment & Finance, Vol. 31 No. 6, pp. 522-544. https://doi.org/10.1108/JPIF-09-2012-0043

Publisher

:

Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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