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The Group Real estate operations
A store site network is a strategic competitive factor for Kesko. It provides opportunities for developing business operations and increasing sales and customer satisfaction.
The Kesko’s division parent companies are responsible for their own store sites throughout their life cycles. The companies plan their own retail networks and, on the basis of their network and business plans, make the investments in accordance with the Group’s real estate strategy. The division parent companies develop their own store sites, manage their construction, and are responsible for maintaining, managing, leasing and selling them.
For the management of Kesko’s real estate assets and liabilities, the retail stores and other real estate properties are classified as follows:
Kesko’s real estate investments aim to enable the creation of trading services valued by customers by anticipating changes in customer behaviour and the operating environment and by maintaining the technical condition of properties.
Kesko invests only in properties needed in its own business operations. As a result of Kesko’s internationalisation, investments outside Finland have become increasingly important.
Kesko’s construction activity is based on life-cycle affordability and eco-efficiency. This means optimising the costs and environmental burden across the entire life cycle of a store site.
The aim is to build business premises with the lowest life-cycle costs in the trading sector.
Further development of the eco-efficiency of existing properties has focused on monitoring energy consumption and improving energy use. The aim is to reduce both consumption and costs.
Property maintenance relies on systematisation and proactivity. Repair work is scheduled to coincide with the rebuilding necessitated by business operations.
The management and maintenance of properties owned or leased by Kesko has been outsourced to ISS Palvelut Oy, Ovenia Oy and YIT Kiinteistötekniikka Oy, which carry out the work in accordance with Kesko’s requirements. Kestra Kiinteistöpalvelut Oy, owned by Kesko, is responsible for purchasing electricity for the K-Group.
The emissions generated in the production of electrical and heat energy for properties account for a significant share of the K-Group’s environmental impact. Therefore the K-Group’s environmental policy obliges Kesko’s real estate operations, in cooperation with its business partners, to develop solutions related to the building, repairs, concept changes, maintenance and use of real estate properties that reduce the consumption of materials and energy during the life cycle of these properties.
The electricity, heat and water consumption of Kesko’s properties has been monitored closely since 1995. The managers responsible for property care and maintenance report about deviations in consumption to the energy team of the real estate operations. Reasons for deviations are investigated and corrective actions are taken immediately. Close energy monitoring helps keep the technical systems of properties in order and maintain the value of properties
Owned properties |
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| Capital*, € million | 2009 | 2008 |
| Finland | 656 | 776 |
| Other Nordic countries | 70 | 57 |
| Baltic countries | 32 | 41 |
| Russia | 112 | 77 |
| Total | 870 | 951 |
Area, m2 |
2009 | 2008 |
| Finland | 629,000 | 756,000 |
| Other Nordic countries | 80,000 | 62,000 |
| Baltic countries | 103,000 | 103,000 |
| Russia | 46,000 | 34,000 |
| Total | 858,000 | 955,000 |
Leased properties |
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| Lease liabilities, € million | 2009 | 2008 |
| Finland | 2,036 | 1,767 |
| Other Nordic countries | 118 | 110 |
| Baltic countries | 171 | 183 |
| Russia | 32 | 45 |
| Total | 2,357 | 2,105 |
Area, m2 |
2009 | 2008 |
| Finland | 2,358,000 | 2,191,000 |
| Other Nordic countries | 202,000 | 205,000 |
| Baltic countries | 429,000 | 431,000 |
| Russia | 25,000 | 25,000 |
| Total | 3,014,000 | 2,852,000 |
| *Carrying amounts |
