Serena Properties (Serena) is a newly formed real estate company with a portfolio of 21 commercial retail properties in 14 mid-sized towns in Finland. The company owns and manages properties located in established retail areas with tenants that are attractive and largely comprise grocery and discount retailers. The largest tenants are Kesko and S-group. Total leasable area is 149,000 square metres.
The Finnish retail sector has experienced several tough years but is expected to report growth again in 2017. There is presently a great interest in investing in the type of real estate that is part of Serena. The return levels are still higher than in many other geographies and segments. Most of Serena’s tenants are grocery and discount retail store chains that have performed relatively well even in a weak domestic economy in Finland.
There are a number of players who invest in retail properties in the Nordic countries, including Svenska Handelsfastigheter, Sveafastigheter Riks, Nordika funds and Vencom.
Serena Properties’s sustainability agenda focuses on the company’s environmental impact through its real estates’ energy consumption and heating.
Value creation through development of retail areas
With the establishment of Serena Properties, Ratos sees an opportunity to streamline day-to-day operations and generate value by developing the retail areas through proactive management. There is potential for growth in value-generating investments to develop the properties, extending leases, and optimising the mix of retail area tenants. Serena has a well-diversified portfolio of retail properties in Finland, with long-term contracts with high-performance retail chains.