Our business model

Our business model aims to generate value through property management, development and transactions. The company owns and manages commercial properties concentrated in Stockholm inner city, Solna and Hammarby Sjöstad. Operations are to be characterised by active, customeroriented management. The property portfolio is continuously refined through property development, acquisitions and divestments.

Property management – close to the customer

Property management is Fabege’s main business area. The properties are managed by an efficient in-house organisation, which is divided into separate property management areas. Each area has a large degree of
individual responsibility to ensure a high degree of commitment and proximity to the customer. The company’s close-to-the-customer property management activities are designed to support a high occupancy rate and encourage customers to remain with Fabege. Satisfied customers help to improve our net operating income.

Development – adding value

Property development in properties with growth potential is a key element of Fabege’s business model, with the aim of adding value. In addition to developing and improving acquired properties, Fabege already has a number of development and project properties in its portfolio, and seeks to develop their potential as market conditions permit. The volume of projects is adapted to market demand. New builds and more extensive development projects are always based on the principles defined in the Environmental Building programme.

Sales – concentrating the portfolio

Fabege aims to sell properties that are located outside its concentrated property management units or have limited prospects for further growth. Location, condition and vacancies are key factors determining the growth potential of a property. A fully let property with modern and efficient premises that is deemed to have limited potential for rent increases and capital growth could thus become a candidate for divestment.

Acquisitions – create growth

Fabege aims to acquire properties that offer better growth opportunities than existing investment properties in its portfolio. As a significant player in a number of select sub-markets, Fabege has acquired in-depth experience and knowledge about the markets, plans for development, other players and individual properties. The company continuously monitors and analyses developments with a view to exploiting opportunities to add value to its property portfolio.

Business model contributes to earnings, per 31 December 2012