Expenditures and financing

The City owns the facility that is rented to the wholly-owned company Musikens Hus i Uppsala AB.

The total acquisition value (cost of investments) amounts to 529 million SEK. The investment was partly financed with bank loans, and partly by the city selling real estate with a capital gain equivalent to 200 million SEK. In the calculations, it was assumed that the City raises a loan of 329 million SEK at an average interest of 5 percent and that the repayment and depreciation periods are 50 years. The rental charges the company can be expected to pay amount to 20 million SEK annually. To attain this rental level, an indexed rental scheme is applied for 50 years, which is comparable to that applied within the real estate sector.

The company's costs for rent, staff, production, marketing etc. shall correspond to the expected income of a total of 47 million SEK. The income comes mainly from rents and leases for making the premises available, box-office takings from own engagements as well as reimbursement for cultural policy tasks commissioned by the Cultural affairs board of 20 million SEK.