Undue optimism on state-owned property value

13.08.2019 - 19:48
Undue optimism on state-owned property value
The government is being unrealistic when evaluating the sales value of public properties, say auditors

The National Audit Office has repeatedly reminded the government to be more realistic when planning sales of state-owned buildings.

Last year, the expected income from sales of public property was DKK 30 million, and the actual sales value turned out to be DKK 12.8 million.

The expected sales value of state-owned buildings in the 2019 budget is DKK 25 million.

Minister agrees

Heðin Mortensen, the Minister of Transport, Infrastructure and Labour, has considered the Audit Office’s advice and has toned down the expectations, reducing the expected sales value in the 2020 budget proposal to DKK 10 million.

Over the past three years, the average sale price of state-owned buildings has been DKK 8.4 million.

According to the minister, the state owns 185 buildings, totalling 240,000 square metres.

Translated by prosa.fo

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