Fastighets AB L E Lundberg is one of the major private real estate
owners in Sweden. The real estate portfolio consists largely of
centrally located residential, office and retail properties.
Fastighets AB L E Lundberg is one of the major private real estate owners in Sweden. The real estate portfolio consists largely of centrally located residential, office and retail properties.
The real estate holdings include 154 wholly and jointly owned management properties in 15 municipalities throughout central and southern Sweden, with particular focus on major metropolitan areas and university cities. The portfolio also includes about 70 development objects. Most of the holdings in the real estate portfolio were built during the construction-intensive years of the 1960s and 1970s, and consist largely of structures built on a proprietary basis. The division between residential and commercial properties is relatively even at 47% and 53%, respectively, of rental value.
Business concept and strategy
Fastighets AB L E Lundberg’s business concept is to manage and develop residential and commercial properties in municipalities where favorable growth is expected.
The company focuses on:
- low sensitivity to economic fluctuations through even distribution between residential and commercial properties
- comprehensive local market knowledge through a decentralized organization
- effective management with high levels of tenant service
- optimal operating and development gains based on the potential of each individual property.
In 2010, the commercial new construction project in central Jönköping was completed, while construction work on a new office and retail property was completed in September 2011 in an entire city block in Norrköping. A number of centrally located new construction projects are being evaluated in areas where Lundbergs is active and work is expected to start on these in the next few years.
In 2010, a number of investment properties were also acquired for a total of SEK 524 m.
The company’s property management is divided into four regions: Gothenburg, Stockholm, Western and Eastern. The management group includes the President, Vice President, regional managers, financial director, project development manager and rental administration manager.
The organization constitutes an excellent platform for a continued focus on current property management operations, combined with opportunities to further improve and develop new and existing properties in attractive locations. Property management and development operations are led by four regional managers. Everyday management and rental activities are handled locally by the respective offices. Project development operations are conducted centrally from the head office in Norrköping, which also has resources for administration, operation, accounting, information, purchasing, IT, and environmental and quality matters.
The Gothenburg region comprises Gothenburg and Jönköping. Robust demand for housing and offices is creating a favorable rental situation in the region. In central Jönköping, a major new construction and remodeling project has been under way at the Ansvaret 5 property since 2008. The property contains retail and office space, and was completed in May 2010.
The Stockholm region consists of Enköping, Eskilstuna, Nyköping, Solna, Stockholm, Södertälje and Uppsala. The close proximity of the municipalities to Stockholm contributes to favorable rental scenario.
Real estate holdings in Solna, Stockholm and Uppsala consist mainly of commercial premises, while housing accounts for 84% of managed properties in Eskilstuna, Nyköping and Södertälje. Demand for housing in the region is healthy and the rental situation for commercial premises remains favorable.
The Western region consists of Arvika, Karlstad and Örebro. Supported by strong demand for housing, as well as office and retail space, the rental situation is favorable throughout the region. In Karlstad, a centrally located site was acquired to enable the new construction of a commercial property.
The Eastern region comprises Katrineholm, Linköping and Norrköping, with about 70% of the portfolio concentrated in Norrköping. The rental situation for housing, retail premises and offices is favorable throughout the region. In Norrköping, a major new construction project was completed in September 2011 in the Lyckan property. The project consists of 15,000 square meters of office space, 2,300 square meters of retail premises and about 240 parking places. Two-thirds of the office space is leased to the Swedish Transport Agency. In January 2010, access was gained to the retail and office property Disponenten 2 in Linköping. Rentable space totaled 14,000 square meters, of which retail space accounts for about 10,000 square meters. On July 30, 2010, access was gained to the Bokbindaren 27 and 28 properties, which are centrally located in Linköping and comprise 1,900 square meters of office space, as well as a development right for 7,000 square meters of space for commercial purposes.
The development properties are situated mainly in central Sweden and comprise 2,491 hectares of farmland, forestland and centrally located sites distributed among about 70 objects. The property development operations transform properties into sites suitable for commercial development and create new projects for resale. This is achieved through active involvement in planning and property formation matters, and through cooperation with parties in need of developable land. Detailed development plans are being prepared for approximately 1,000 single-family homes and apartments in such locations as Haninge, Mariefred, Norrköping and Örebro.
Quality and the environment
The operations of Fastighets AB L E Lundberg have been quality certified in accordance with ISO 9001:2008 since 1998. Since March 1, 2010, the company has also been environmentally certified in accordance with ISO 14001:2004 and energy certified in accordance with SS-EN 16001:2009. The company works proactively to increase the energy efficiency of its properties, with the aim of reducing total energy consumption and improving the indoor residential climate for tenants. Fastighets AB L E Lundberg exclusively purchases electricity marked with the “Good Environmental Choice” label, as approved by the Swedish Society for Nature Conservation.
The company intends to secure environmental classification for new projects that are planned under the EU Green-Building and Environmentally Classified Building certification systems. For existing properties that fulfill the GreenBuilding requirements, certification work is under way. Fastighets AB L E Lundberg is a member of the Sweden Green Building Council.