The CEO of Higab, a municipal real estate company in Gothenburg, bypassed the city's housing queue to allocate a prestigious apartment to a consultant. This decision, made without public listing, has sparked an internal investigation. The CEO admits the move was a mistake, intended to quickly lease the property on a short-term basis.
Göteborg Real Estate Director Bypasses Housing Queue for Consultant
Göteborg Real Estate Director Bypasses Housing Queue for Consultant
The CEO of the municipal real estate company Higab in Gothenburg bypassed the city's housing queue to allocate a prestigious apartment to a consultant. The company is tasked with managing many of the city's unique historical properties.
The rule is that all apartments should be advertised through Boplats Göteborg, the city's version of the traditional housing queue where apartments are distributed based on factors like waiting time.
However, when Higab's CEO, Per-Henrik Hartmann, was asked earlier this summer who would become the new tenant of a 164-square-meter, five-room apartment in an 18th-century manor-type building in one of Gothenburg's upscale areas, he opted for a verbal special arrangement.
A Verbal Decision by the CEO
The apartment was given to one of Higab's consultants, hired as a business developer to investigate and improve Higab's internal decision-making processes. The allocation occurred without listing on Boplats Göteborg, and the decision was the CEO's.
The rent: 13,166 SEK.
A "directly negotiated agreement," Higab stated when Expressen questioned the company last week.
Hartmann admits he made a mistake, explaining the decision as an opportunity to quickly lease a vacant apartment on a so-called short-term contract.
– We are reviewing the property and what to do with it, and we wanted income in the meantime. So, we made the rental. And it's only for a few months, a short-term rental, until I decide on its future use, he says.
Intention: Maximum One Year
A short-term contract lacks tenancy rights and can legally last up to four years. However, the landlord can also have the tenant move out on very short notice.
According to Per-Henrik Hartmann, the "intention" is for the consultant to rent the apartment for at most one year.
But why wasn't it listed on Boplats?
– It was because there was a chance to rent it out a bit faster, and it was a short-term agreement. We made that assessment then. And I can see and understand in hindsight that we shouldn't have done it. It was a misjudgment of the situation. But we did it to get income and to avoid having it stand empty. It's not good when these houses are empty.
I Take Responsibility for It
You say we, but it was you?
– I stand by the decision in the end. Yes, I take responsibility for it.
Per-Henrik Hartmann has extensive experience as CEO of municipal housing and real estate companies. Previously, he was CEO of the municipal company Familjebostäder for several years, and since 2020, he has managed Higab with 300 properties. Among the properties are many of Gothenburg's real landmarks like Ullevi, Feskekôrka, and Stora Teatern.
Unique Decision
But Hartmann cannot recall ever making such an exception during his time at Higab. He adds that most of Higab's properties are commercial spaces, not residences.
The company has now launched an investigation into what went wrong. Meanwhile, the consultant's assignment has been paused.
– I felt it was important to complete our investigation. So we can confirm that nothing else has happened. That's why it's paused, says Per-Henrik Hartmann.
But at the same time, you made the decision now being investigated?
– Yes. We want the consultant to have the best conditions to continue their assignment for both their and our sake. That's why we pause.
The Consultant: "Needed a Home"
According to Higab, the rent and agreement were set according to market principles.
"I was in a situation where I needed a home and therefore asked Higab if there was anything I could rent. I then got a short-term contract for an apartment," the consultant writes in a text message, referring all questions about the decision and rental to the real estate company.