A stable company with a sustainable business model

Vasakronan is owned in equal shares by the First, Second, Third and Fourth Swedish national pension funds. The owners are to ensure long-term financing of the pension system and invest their capital in various types of assets. Property investments are made through Vasakronan, among others. Our owners make high demands and Vasakronan’s assignment is to deliver a high and long-term risk-weighted return without harming people, the communities in which we operate or the environment. Vasakronan’s vision is to “create future-proof cities for everyone, where people and companies thrive.”

Our ambition

In addition to the mandate from our owners, Vasakronan’s ambition is to be Sweden’s leading property company. That is achieved by:

  • Generating a high total yield, that should also exceed that of the industry in general.
  • Being the preferred choice for tenants looking for office or retail premises.
  • Being perceived as the most attractive employer in the industry.
  • Assuming social responsibility and striving for long-term sustainable development.

To succeed, sustainable values need to be created in operations. Vasakronan therefore has a continuous dialogue with its stakeholders to survey and understand their expectations of the company. Value is created in operations through property management and development, and supplemented by active transactions.

Long-term goals

Vasakronan has ambitious goals for its operations, both short- and long-term. Vasakronan’s CEO and Management Team have overall responsibility for steering operations toward the targets and following up on quarterly results and internal steering parameters.

Financial

  • A total yield of at least 6.5% per year (rolling average over ten years).
  • A total yield of at least 0.5 percentage points higher than the industry.
  • All of our ¬financing is green.

Environmental

  • Climate neutral across the entire value chain by 2030.
  • We are self-sufficient and do not need to purchase any energy.
  • 100% circular use of materials.
    (We only use renewable, recycled or reused materials in our construction projects).
  • 100% circular waste management.
    (Our business and those of our customers generate no waste that is not possible to be recycle or reuse).
  • 100% fossil-free transportation.
    (Transportation for ourselves and our customers not dependent on fossil fuel).

Social

  • Everyone who works for Vasakronan has acceptable working conditions and a good physical, organisational and social work environment free from worksite accidents.
  • Our company and our suppliers are diverse and have an inclusive corporate culture, and help individuals who are far removed from the labour market to find employment.
  • Our areas and properties are aesthetically pleasing and are designed to support:
    – occupational health and safety
    – health and well-being
    – inclusivity for everyone

Strategies

To ensure that the assignment from owners is fulfilled and that we remain relevant and continue to create value for other stakeholders, Vasakronan has clear strategies for investments, customers, financing and employees. These indicate the long-term orientation and aim to create the best preconditions for offerings, properties and areas that are sustainable today and tomorrow.

Investment strategy

Vasakronan’s holdings are focused on modern, sustainable, flexible and centrally located office and retail properties in parts of Sweden with healthy economic growth. Our strategy is to make sustainable investments in long-term attractive markets and areas.

  • Growth markets
    The focus is on locations with strong economic growth and highly liquid transaction markets.
  • Attractive areas
    The holdings comprise centrally located, sustainable properties in areas with excellent communication links.
  • Workplaces, retail and service
    The holdings are focused on attractive premises for offices, city retail and local services.
  • Urban development and active management
    Continuous development of our neighbourhoods and our property portfolio to meet demand and to improve quality.
  • Transactions and project development
    The size of the project portfolio, and acquisitions and divestments of properties are based on market conditions.

Customer strategy

The basis of Vasakronan’s offering comprises flexible premises in great properties, attractive locations and good transport links. With the customer’s needs at the centre, we continuously explore and develop new solutions to achieve our goal of being the preferred choice for tenants looking for office or retail premises.

  • Attractive products
    An offering that meets everyone’s needs, everything from customised to fully furnished premises.
  • Sustainability
    Choosing a premises solution from Vasakronan is the most socially and environmentally sustainable alternative in the market.
  • Technological solutions
    Technological solutions that simplify customers’ daily tasks and enhance resource efficiency.
  • Consultancy
    Customers receive active support and inspiration on how to best design their premises based on their challenges and development needs.
  • Services
    Full responsibility for the delivery of premises solutions with packaged services.

Financing strategy

Access to financing on favourable terms is critical for property sector operations with long-term high yields over time. Our strategy is based on low financial risk through active debt management and a long-term green financing strategy.

  • Balanced interest-rate risk
    Actively working with the fixed-interest structure to leverage the prevailing market conditions.
  • Spread of maturities
    Reduced refinancing risk through spread maturities for loans.
  • Diversified sources of finance
    A diversified financing structure in terms of sources of finance and markets.
  • Green financing
    Gradual raising of the share of green financing and continuously raising requirements in the company’s green framework.
  • Strong rating
    Active efforts to maintain a credit rating of A3 with a stable outlook, from Moody’s.

Employee strategy

Vasakronan strives to be an attractive employer for dedicated and highly motivated personnel. Cultivating dedication and motivation is not only a key to success, but also our responsibility as an employer. At Vasakronan, our employees develop as we develop as a company.

  • Strong values
    Strong values provide a context that brings out the best in each and everyone.
  • Attractive offering
    Modern workplaces and work methods, as well as decent conditions, are prerequisites for the peak performance and satisfaction of employees.
  • Commitment
    Strong innovative power and high sustainability ambitions in everything we do.
  • Continuous learning
    Creates the conditions for everyone to put their mind and skills toward a greater pool of shared knowledge.
  • Modern leadership
    Inquisitive leadership that sets clear goals and builds strong teams.

Do you have any questions about our business model or goals?
Contact Stina Carlson for help.

Head of Group Controlling Stina Carlson 076-784 88 43 stina.carlson@vasakronan.se

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