Property investor behaviour: qualitative analysis of a very large transaction

Purpose - This explorative case study focuses on property investment decision making from a behavioural perspective at the very microlevel. The study contributes to an understanding of how property investors manage the decision‐making process, including organizational aspects, property valuation, and financial management. Design/methodology/approach - Applying a qualitative approach, the authors analyse a very large transaction that occurred in the Swedish property market in 2008. In an open bid transaction, properties of Vasakronan Corporation were sold for SEK41.1 billion (€4.3 billion). Managers in both the purchasing company and the consortium making the second highest bid were interviewed. The authors were encouraged to speak freely, but also used an interview guide with a number of themes as well as specific questions. Findings - The findings reveal the characteristics of two types of property investment decision‐making behaviour with respect to how actors organize the work, use external consultants, value the properties, and secure the financing necessary for a final bid. Practical implications - Creditors, analysts, and appraisers may benefit from the insight that property investment decision makers can use different approaches in determining their final bids. Originality/value - The authors use a qualitative empirical approach in analysing an extraordinarily large property transaction from a buyer's point of view and presents detailed information about this transaction as well as general insights into actual behaviour rarely examined in the property investment literature.