ABSTRACT
By realizing large-scale real estate projects, stakeholders try to achieve sustainable urban developments. Public authorities and the private development sector need each other, but misunderstandings, delays, controversies, and failures are typical for many public–private partnerships (PPP). Potential reasons are the absence of a common target system, not clearly defined responsibilities, and wrong incentives in combination with organizational forms for a PPP. The following study presents an alternative PPP approach by applying urban finance innovations, which have become popular in the last ten years in European urban policy. To evaluate these financial innovations, we will first derive a common understanding of sustainable urban development through real estate projects and define the roles and interests of the involved stakeholders. Second, we will introduce an ideal type of real estate development project. In the third step, we apply potential financial innovations of a PPP solution. After evaluating the effects of these innovations, we will come to a final recommendation for organizing public–private partnerships for real estate development.
