LeaseGreen starts refitting Catella real estate portfolio in Finland

The refit of building technology improves the tenants’ work conditions and owner’s profits.

LeaseGreen and Catella Asset Management has signed a deal which improves the technology and competitiveness of Catella’s own property portfolio in Finland. During the first stage of this cooperation two properties in Helsinki will modernised.

These buildings has been built in the beginning of 1980’s. LeaseGreen will plan and execute a modernisation of building automation and ventilation systems for them. The heating, air enthalpy recovery solutions and lighting will be modified as well.

”It will be much easier to control the buildings after we have updated the automation and ventilation to the today’s standards”, says Iiro Nurkkala, CFO of Catella Asset Management.

”Modern remote-controlled technology saves energy and supports our renting operations. The heating and ventilation will be optimised according to the temperatures and the current use of different property spaces.”

Finance contract included

The investments will be financed by LeaseGreen. The monthly energy savings will be larger than the finance costs. According to LeaseGreen estimates, these investments will lead to a ROI of 16-22% before the finance expenses. The estimated worth of energy savings will be approximately 500,000 euros during the lifecycle of investments.

”The finance follows with the lifecycle of investments. This principle works fine for us”, says Iiro Nurkkala.”

”We don’t have to tie our own capital or time considerably to these projects. If we would execute this work by ourselves, the risks with success would be much larger, because we are not very experienced professionals of building technology projects.”

According to Nurkkala, LeaseGreen’s way of doing business builds trust in a customer:

”The real estate owner doesn’t always know beforehand, which measure is profitable and which is not. We respect a service company which can count and thinks twice on behalf of its customer. I like especially the way LeaseGreen’s experts point out those investments which could be done but which are not viable to the customer.”

Surveying 29 properties

Catella is a public Swedish property company which is listed at the Nasdaq Stockholm Exchange. In Finland, Catella offers asset management and advisory services, and it has approximately 40 properties in its own portfolio. Accorging to Nurkkala, Catella has signed with LeaseGreen a framework deal which includes surveying the efficiency opportunities for 29 properties.

LeaseGreen’s CEO Tomi Mäkipelto says that he considers the modernisation opportunities as significant.

”They exist in almost all aging properties. But what is possible is not always reasonable. The owner must a receive quite strong evidence that the investment add economic value. We do our best to plan such projects that benefit both the property owners and their tenants.”

More information

CEO Tomi Mäkipelto
LeaseGreen Group Oy
+358 50 370 4092

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