Ljubljana, 23 September (STA) - As the only shareholder of Slovenian Sovereign Holding (SSH), the government confirmed on Monday the transfer of SSH's real estate business onto DSU, a state-owned real estate management company. SSH had acquired this property when the Bank Assets Management Company, a band bank, was folded into SSH at the end of 2022.
The basis for the transfer is a contract SSH and DSU signed on 20 August, which the government discussed at today's AGM.
SSH will thus be transformed through excluding its real estate business and transferring it onto DSU, which should be completed by the end of the month.
The development is in line with the overhauled state assets management strategy the National Assembly passed on 10 July.
DSU will use the acquired property or the proceeds from its sale largely to construct affordable public rental housing, which is in short supply in Slovenia.
On 30 June 2022, the bad bank's real estate portfolio had 208 units; almost half of them were plots of land, of which the majority designated for housing.
The rest of the portfolio were residential, commercial and industrial buildings.
Projections show that DSU, whose main line of business is real estate management, could use this land or the proceeds from it to build 2,500 affordable rental homes by 2030.
The new homes are to be built based on the so-called Austrian model; DSU would raise the basic capital by selling non-residential real estate and then use the funds and loans to finance the projects, which means that no budgetary funds would be needed.
