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Common operations Real estate operations
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. 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 capital expenditure in accordance with the Group's real estate strategy. Opportunities for cooperation between the division parent companies are sought and made use of in shopping centre projects.
Real estate property management
For the management of Kesko's real estate assets and liabilities, the retail stores and other real estate properties are classified as follows:
Strategic properties are large retail stores which involve important business interests related to the continuity of management, the flexibility of change and the financial value of the premises. In order to protect such interests, Kesko usually prefers to own these properties.
Standard properties are premises owned by the Kesko Group. They can be sold and leased back for use in the Group's business operations.
Realisation properties are those for which Kesko has no further use.
Development properties are those in need of further development for their intended use.
Capital expenditure
Kesko's capital expenditure in real estate aims 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 makes capital expenditure only in properties needed in its own or supporting business operations. As a result of Kesko's internationalisation, capital expenditure outside Finland have become increasingly important.
Life-cycle affordable and eco-efficient real estate operations
Kesko's real estate operations are based on the life-cycle affordability and eco-efficiency of store sites. This means optimising the costs and environmental burden across the entire life cycle of a store site. The aim is the lowest life cycle costs in the trading sector.
Further improvement of the eco-efficiency of existing properties is based on the comprehensive monitoring system of energy consumption and the remote control of housing automation as part of daily maintenance.
Property maintenance
Maintenance services production of the properties managed by Kesko has been outsourced to YIT Kiinteistötekniikka Oy, ISS Palvelut Oy and Ovenia Oy. Systematic and proactive maintenance is managed through a centralised ERP system. Comprehensive management of property data enables efficient maintenance and on-time repairs and replacements in order to secure good conditions and energy efficiency. Kestra Kiinteistöpalvelut Oy, owned by Kesko, is responsible for purchasing electricity for the K-Group.
Kesko monitors the energy consumption of properties
The emissions generated in the production of electrical and heat energy for properties account for a significant proportion 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. Kesko's specific consumption of heat energy has since decreased by over 60% and, correspondingly, specific consumption of electrical energy has decreased by over 20%. Close energy monitoring helps keep the technical systems of properties in order and maintain the value of properties.
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about store site projects and energy solutions on responsibility.Owned properties |
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| Capital*, € million | 2011 | 2010 |
| Finland | 887 | 759 |
| Other Nordic countries | 96 | 84 |
| Baltic countries and Belarus | 34 | 38 |
| Russia | 202 | 125 |
| Total | 1,219 | 1,005 |
| Area, m2 | 2011 | 2010 |
| Finland | 693,000 | 615,000 |
| Other Nordic countries | 97,000 | 90,000 |
| Baltic countries and Belarus | 117,000 | 118,000 |
| Russia | 92,000 | 61,000 |
| Total | 999,000 | 884,000 |
Leased properties |
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| Lease liabilities, € million | 2011 | 2010 |
| Finland | 2,055 | 2,059 |
| Other Nordic countries | 93 | 109 |
| Baltic countries and Belarus | 125 | 147 |
| Russia | 40 | 23 |
| Total | 2,313 | 2,338 |
| Area, m2 | 2011 | 2010 |
| Finland | 2,338,000 | 2,338,000 |
| Other Nordic countries | 185,000 | 190,000 |
| Baltic countries and Belarus | 469,000 | 471,000 |
| Russia | 41,000 | 25,000 |
| Total | 3,033,000 | 3,024,000 |
| *Carrying amounts | ||
