Public Property Invest

Annual Report 2021


Leaders in socially beneficial and
essential property.

What an amazing six months!

Overview from the CEO

Between founding the company in the summer of 2021 and New Year’s Eve, here at Public Property Invest AS (PPI) we have established ourselves as a leading player in commercial real estate with public-sector tenants.

Overview from the CEO

In our first six months of operation, we acquired 41 socially beneficial properties with a total value of NOK 8 451 million. At the end of 2021, we had net rental income of NOK 408 million from properties covering a total of 247 500 square metres.

A six-month period with so many transactions places demands on – but is also enormously rewarding for – a newly established company, especially from an operating and management perspective. Consequently, our journey would not have been possible without a clear strategy, an expert team and solid owners. I would like to thank Arctic Securities and Arctic Real Estate Management for their highly constructive and positive cooperation over the past year. Without their outstanding team, none of this would have been possible. I would also like to thank our owners for the trust they have shown us.

Overview from the CEO

We have encountered very strong investor interest and all our issues have been heavily oversubscribed. We have generally found that the majority of shareholders have wanted to maintain or increase their ownership interests in line with growth. This reassures us that we have adopted the right business plan and strategy and that we have found a niche in commercial property where 88 per cent of income comes from public-sector tenants. We are also grateful to suportive lenders whose faith in PPI’s business concept equals our own.

We have set a goal of generating further growth in the coming years. Developing existing portfolio will be one of several important activities to achieve such growth. Investing in and managing a large-scale portfolio will enable us to leverage economies of scale and offer our tenants the best product in the market. At the same time as preparing for further growth in the coming years, we are working to establish a robust, responsible and sustainable company and increase the value of our properties for our tenants and owners, and the communities around us.

Overview from the CEO

As an industrial player, we are keen to ensure that we run our business in a healthy and responsible manner, so that we build communities. In collaboration with tenants, local communities and not least the authorities, and with help from our suppliers, we will further develop our existing properties with both our heads and our hearts. We will achieve this by applying our values: presence, quality and value creation.

What an extraordinary second half of 2021 it has been for PPI and everyone who is working to develop the company! We have set ourselves ambitious goals and are looking forward to the journey ahead.


Morten Kjeldby | CEO

Key Figures

December 31st 2021

Gross Area (sqm)
Value / sqm (NOK)
Gross Rent / sqm (NOK)
CPI Adjustment
Public Tenants

Size with social importance

Property Summary

The portfolio is mostly comprised of office space.
Gross area of 247 500 sqm ranks Public Property Invest among Norway’s top 42 largest property companies.

Limited asset risk concentration

Property Summary

Real estate values are evenly distributed across the portfolio.
Both in terms of size and locations, however, majority concentrated around Eastern Norway.

Our Properties


Our Properties

The courts must be independent. They shall ensure and promote the rule of law and protect the rule of law. The courts shall at all times have high confidence in society. Our courthouses are located in city center and an important part of the cityscape. The buildings have a symbolic meaning for the rule of law in Norway, and many of the courts are great signal buildings. Common to these buildings is that they are tailored to the needs and requirements of a district court for planning, flexibility and security.


Our Properties

NAV administers a third of the national budget through schemes such as unemployment benefit, work assessment allowance, sickness benefit, pensions, child benefit and cash-for-care benefit. PPI contributes to this work through our buildings. NAV buildings are all placed in city centre and contains mainly office space. These buildings are office to a great number of public employees and are important meeting places for the agency and the inhabitants in need of their support.

Municipalities and counties

Our Properties

Municipality- and county-houses are important institutions in local communities, so are the buildings that house these institutions. Our portfolio consists of buildings that are both historic and symbolic. Our tenants do an important work to keep the local politics and regulations, and PPI are proud to contribute to local government through our buildings in this sector. The total rental income from Municipality- and county-houses constitutes the largest revenue for the company sorted by type of tenant.

Police departements

Our Properties

The local police houses in Norway are a part of the public security for the population. The fact that these buildings represent all what the police stands for is important for PPI to be aware of in our work on maintaining, operating and developing these buildings in a long perspective

The Norwegian Tax Administration

Our Properties

At the Norwegian Tax Administration, more than 7,500 employees are working towards the same goal, to secure the financing of the welfare state. The Norwegian Tax Administration is subject to the Ministry of Finance and is responsible for an updated population register and that taxes are determined and paid correctly. They work on the vision of a society where everyone wants to make amends. The Tax administration is a tenant in several of PPI’s buildings and have both office space and space for meeting the population in our buildings.

Other properties

Our Properties

In addition to the specific properties described earlier, PPI has several tenants from different sectors in our multi-purpose buildings with a combination of public and private tenants together. These buildings are city centre properties with multiple functions and private tenants, such as grocery stores, jewellery stores, banks, accounting – and lawyer companies. Private tenants cover 12% of our total portfolio.

The majority of our properties are located in the southern part of Norway.


Geographical allocation by area

Our Tenants

Share of public and private tenants.


Rental conditions

The majority of our buildings are single-use buildings.
Others are shared between public and private tenants.


Gross Rent Distribution

Share of office, storage/retail and parking in our portfolio.


Portfolio Area Composition

Contracted Rent - Lease expiry profile in terms of revenue.

Renewal options - Lease expiry profile in terms of revenue.



PPI focus on all three aspects of sustainability, environmental, social and governance, in our strategic work. This is a journey that has just started and will evolve throughout 2022 and further. Here is a summary on our ESG-policy. Please visit our homepage to read more about our focus on ESG.

Sustainability in our Buildings


Our owners have high expectations and requirements of the results they expect the company to deliver. This means we must ensure that our portfolio delivers added value and sustainability.

From day one, sustainability has been high on our agenda and we have set aside the time and resources required to achieve our goals in this area. Work to map the status of our buildings is progressing well, and we will use the results to prepare an environmental strategy tailored to each individual building. By engaging a team of advisers with extensive experience and leading expertise, and collaborating with relevant partners, we will ensure the most sustainable solutions and best results in both the short and long term.

Sustainable Future


At the UN General Assembly in September 2015, the world’s heads of state and government adopted 17 global sustainable development goals, and the countries of the world committed themselves to endeavour to steer the world towards a sustainable future. Three years later in December 2018, the von der Leyen Commission presented the European Green Deal, a European Commission strategy to make the EU climate neutral by 2050. In addition, the EU’s taxonomy for sustainable economic activity was launched through the EU Taxonomy Regulation 2020/852 of 18 June 2020, which consists of a common classification system to be used to assess whether economic activities are sustainable.

Six years after the UN’s sustainable development goals were adopted, in August 2021 the incumbent UN Secretary-General, António Guterres, issued “a code red for humanity”.

Sustainability Goals


We know that globally the construction and property industry accounts for around 40 per cent of greenhouse gas emissions, 40 per cent of energy consumption and 40 per cent of resource use. Surveys also reveal that 50 per cent of the world’s office space is unused at any given time, which means that the property industry must take responsibility for helping society achieve the UN’s sustainable development goals.

Against this background, PPI, as a newly established company, is aware of the global changes that are currently underway in the field of sustainability and from the outset has aimed to be a responsible and sustainable industrial property player. Our ambition is to be climate neutral by 2030. At the same time, we strive each day to ensure that we run our properties sustainably, including in terms of climate risk, biological diversity, and social and business ethics.

PPI considers sustainability a key area of risk and opportunity to add value to our portfolio, and for this reason we have included sustainability in our overall strategic plan. We started preparing a detailed strategy and plan for sustainability in 2021 and will further expand and roll out the strategy in 2022.

Long-term Value


Community-building, quality and added value are our values and must permeate everything we do, including when it comes to sustainability. We are part of the same community as our clients and properties, understand the needs that exist and make good choices on this basis. By delivering quality, we also ensure sustainability through enduring solutions that meet our clients’ actual long-term needs. By adding value, we will create the right, long-term value for everyone involved – for our clients, communities and owners.

Environmental Requirements


Our tenants are public-sector actors who set stringent requirements for the environment, functionality and efficiency in our buildings. Satisfied clients are good clients and an important testament to our work. Therefore, we will strive to deliver buildings that provide good value for our tenants and we will go out of our way to deliver what our clients expect of us both now and in the future.

Managing a portfolio of more than 40 buildings, both old and new, and setting ambitious goals for sustainability also present some challenges. Ensuring appropriate and sufficient expertise, capacity and capital when operating, maintaining and developing existing buildings from a sustainability perspective is challenging. We must manage and balance these challenges in both the short and long term. To ensure success, we approach these challenges in a systematic and structured way in collaboration with expert suppliers and partners, because we know that these challenges also present multiple opportunities to create added value for our properties for our clients, communities and owners.

Environmental Reporting

PPI’s strategy and reporting is based on best practice and are, as an example, leaning on Norwegian Green Building Counsil’s guidelines for enviromental reporting in the property sector.


Within the social aspects PPI will focus on working conditions and equality for employees both at our partners and in our own company. Today 2 out of 5 board members are women, and we strive for diversity both in gender and ethnicity. PPI’s properties shall also have good accessibility for everyone, and we strive for a healthy work environment in our buildings and on our projects.


As a newly established company PPI has in 2021 spent time and resources on onboarding new properties and people and getting overview of how the properties are maintained and operated. In 2022 we will continue to implement and improve our work on reporting, transparency, compliance and control within the company and with our partners.

Growth Plan

Phase 1: Q2 2021

The growth plan

Number of Properties: 15
Property Value: MNOK 2 935

Phase 2: Q4 2021

The growth plan

Number of Properties: 10
Property Value: MNOK ~2 700

Phase 3: Q4 2021

The growth plan

Number of Properties: 16
Property Value: MNOK ~2 020

Phase 4 +: 2022-2024

The growth plan

Number of Properties: TBC
Property Value: MNOK ~5 000

Goal achieved: 2023-2024

The growth plan

Number of Properties: TBC
Property Value: Total MNOK ~15 000

Key Figures

December 31st 2021

Loan to Value (LTV)
Net Rental Income (MNOK)
WALT (years)
Property Value (NOK)


An overview of bond and bank financing per December 31st 2021.


Annual Report 2021 - Public Property Invest AS