Better than owning
Freed up capital Business aims and benefjts to society OUR RENTING CONCEPT is crystal clear. Being able commercial goals and increase the return on to offer the client to sell and buy back the same equity by focusing on their core business. and fmexibility property is a sustainable approach which Nordisk For national, regional and local authorities, it is Renting has been making a reality for decades. an attractive alternative to raising taxes, increasing We are proud to say that we have been, and debt or selling properties in the conventional way. continue to be, successful because the prime The latter can create uncertainty regarding success factor is our customers. Long-term colla- premises that are needed to provide public services. IN A RENTING DEAL, a company or public sector body sells its property boration and strong partnerships are our primary hallmarks. Stable, high-quality corporations and BY CREATING LONG-TERM sustainable customer to Nordisk Renting and then continues to use it. The concept can also secure, long-term public sector organisations are solutions in the public sector, Nordisk Renting can be applied in connection with new builds. A purchase option gives the foundation of Nordisk Renting’s existence. also contribute to greater social benefjt, where the customer the opportunity to buy the property back. In our renting capital released is invested in core operations like concept, the customer has continuing control of key aspects of the schools, health care and elderly care. “ Our driving force is to add Our renting concept itself is simple, but it does property. The tenant retains access to and infmuence over strategically require know-how. Cutting-edge expertise in real client value.” important premises. Capital is freed up for investment in their estate, tax, fjnancing, accounting and legal issues core operation. The debt/equity ratio decreases and the access make Nordisk Renting a leading knowledge to bank fjnance remains intact. Our business concept is and remains to be to company in property renting, with dedicated, acquire, own and – alongside the customer – refjne highly focused employees. The solution is ideal for fjnancially sound companies and properties for the client’s long-term use. This applies By doing business with fjnancially sound public sector organisations with properties that are of great both for existing and sometimes new buildings. organisations we minimise our business risks, and strategic importance to their operations. The unique aspect of our solution is that custo- customers are primarily themselves responsible mers can buy back the properties they operate for managing the properties. This lays a good in at a predetermined option price. One natural foundation for attractive, competitive lease terms. conclusion to our collaboration is therefore that Our driving force is to add value to clients. We ownership of the property returns to the customer. look forward to developing solutions for more Flexibility for the customer is a key issue. private sector companies and public sector Having relationships that are mutually benefjcial organisations. ✕ requires us to be adaptable as customers’ opera- tions evolve. Additional investments and deve- lopment projects are normal over the course of an agreement, as are other types of adaptation. Clients retain access to and infmuence For private sector companies, the main driving Reinhold Geijer over strategically important premises. force behind a renting solution is to achieve President and CEO Nordisk Renting milestones 1986 1998 1999 2001 2003 2010 2013 2015 3i Group Plc and Nordisk Renting Offjce opens in Partnerships are RBS acquires Successful external 68 per cent of The start of a new The Sixth AP Fund is founded in Helsinki. added in Norway Nordisk Renting. fjnancing raised customers have the phase, with come in as owners, Stockholm by and Denmark. of € 240m. top credit rating, increased activity alongside Nordea. PKfjnans, SIAB, investment grade. and a higher rate of Montagu and Wasa. investment. 3
Answering questions about renting. Some of Nordisk Renting’s key personnel at a round- PROPERTY RENTING table meeting. Pictured here: Katarina Sonnevi, Ian Harcourt and Claes Richter. You don’t have to own it to use it Nordisk Renting helps to capture the long-term value of real estate. Our partnerships combine stability and fmexibility in a way that A strong customer focus creates benefjts for both business and society. is important for Nordisk Renting’s personnel, including Lennart Ingefeldt. “ There is great potential for national, regional What does a renting deal entail? A renting deal with us involves selling, and local authorities in freeing up capital for using and buying back the same property. The arrangement is a combi- upcoming major investments.” nation of a strategic leasing solution, Claes Richter which gives the tenant control over their premises in the long term, and a What are the benefjts of our solutions? fjnancing structure. the individual customer’s needs and Our customer sells their property Our approach is an alternative to selling circumstances, rather than general to us and signs a long-term agreement your property and handing it over to a lease agreements as in conventional which stipulates the usage of the pro- new owner. The difference is that our approaches. perty. The agreement includes an option solution gives the client continued So which customers is it suitable for? to buy the property back. The concept control of key aspects of your property. can also be applied in connection with The client retains access to and Customers who are not only looking for new builds. infmuence over strategically important premises, but a solution; primarily large premises. The risk of ending up in a companies and national, regional and disadvantageous position with the local authorities. For the model to be Katarina Sonnevi, an expert in property “ The buy-backs are property owner is minimal, because the mutually attractive, our customers must Experience and fresh perspectives transactions, personifjes the expertise at terms of the contract are known for the be fjnancially sound. The partnership are on hand. Left: Johan Salin. Nordisk Renting. proof that our busi- entire lease period. with the customer is by far the most ness model works.” Capital is freed up for investment in important aspect for us. Our focus is on the core business. The debt/equity ratio matching the customer’s needs, Lennart Ingefeldt decreases and access to bank fjnance irrespective of property cycles. “ The principle behind renting solutions is simple, sense. We are specialists at what we do. remains intact. Nordisk Renting has emerged strong but the model does place demands on the parties.” Is Nordisk Renting a property company? What can the public sector gain from this? from three periods of uncertainty: the What is unique about this solution? No, but it is a property-owning There is great potential in freeing up property crisis of the early 1990s, the Johan Salin company. We are good at putting The option to buy back the property capital for upcoming major invest- dotcom crash at the turn of the What types of property are suitable? What makes Nordisk Renting a good together well-considered solutions to at certain set points. There is always a ments. The renting solutions have the millennium, and the fjnancial crisis partner? customers’ problems, i.e. we do more chance to resume ownership at a advantage of being politically neutral. Special properties are good examples, that began in 2008. Through all this we than meet traditional needs related predetermined price and, for example, On one hand they meet the needs of properties that are closely linked with We believe in what we’re doing. We are have retained our fjnancial strength to premises. At the same time we have to sell the property to realise its value. those who want to sell assets to release the company’s brand or that house convinced that our fjnancing solution and cutting-edge expertise. the resources to do property deals capital, while on the other hand the important public services. They should based on properties is excellent for our Is this approach suitable for everyone? If the buy-back option is taken, that ourselves. In this sense you could taxpayers retain control. Thanks to their be properties that are strategically customers and for their stakeholders alike. means the customer is choosing not to say that we’re consultants with our Our renting solution is a tailor-made versatility, our renting solutions create important to the customer. Their We offer a niche product and we are work with you any more. Is this a failure? own wallet. product. We design solutions based on benefjts to society. location, however, is less important. a niche company, in the most positive 5 4
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