Federal real estate

Construction giant BIG: 250 million dividend for the state

Public buildings such as the Palace of Justice are part of the federal real estate.(Bild: BIG)

There are also success stories from the construction scene: the state-owned construction group BIG (which stands for Bundesimmobilien, belongs to the state holding company ÖBAG) will transfer an impressive dividend of 250 million euros to the state for the past year.

CEO Peter Weiss: "We have achieved increases everywhere, the value of our fixed assets climbed from 16 to 17.2 billion euros." This includes numerous public buildings, universities, schools, etc., as well as residential buildings. BIG CEO Weiss: "We will invest two billion euros by 2040 to become CO₂-neural."

Of the prominent buildings, the renovation of the parliament stood out: After years of work, the final bill actually came in slightly under the budget of 525 million euros.

The demand for housing has increased enormously, especially in Vienna. Peter Weiss: "While 16,000 apartments were still being built in 2021, this figure has fallen to 9,000 in 2023 - and it will continue to fall, as can be seen from the dramatic decline in building permits." However, the federal capital does not need fewer, but rather many more new apartments due to the influx.

BIG is also active in residential construction with its subsidiary ARE, which is intended to operate profitably in the privately financed sector, which it is doing successfully.

The Vienna Twenty Two project was managed by the subsidiary ARE together with the now insolvent Signa. Despite the bankruptcy, construction can proceed as planned.(Bild: Signa-Are)

The Benko bankruptcy was avoided unscathed: Signa was a 50 percent partner in the major "Vienna Twenty Two" project, and it was possible to take over this share in good time (and at a reasonable price). As a result, there were no construction delays.

There will be a change of management at BIG this year: CFO Wolfgang Gleissner will hand over to former UBM board member Gerald Beck in May, and Peter Weiss will change jobs within the construction industry in the fall. The company is still being kept secret.