Groningen city council wants to stop subsidies to Stichting Industrie- en handelsgebouwen Groningen (SIG). According to the city council SIG Real Estate operates more and more like a regular party in the marketplace, making subsidies unappropriate. Other players in real estate had also complained about the unfair market position of SIG.
SIG Real Estate develops and exploits commercial real estate in all sectors. Examples are projects in Zernicke Science Park, Kranenburg and Europapark. The total portfolio is estimated at Ã¢âÂ¬ 150 million. Originally the SIG was founded to develop commercial real estate and so strengthen the Groningen economic position. Even though city council still believes in this mission, it feels that subsidising the organisation is no longer fitting.
After an intermediate phase, SIG will be converted to a public company. Groningen will revoke Ã¢âÂ¬ 18,5 million in loans and council-members will be withdrawn from the board of SIG.