Core themes: Optimise building rights portfolio and market position

To achieve our targets, we must ensure that we have an optimal portfolio of building rights. We will retain and improve the land that has the greatest potential to create profitable projects in a new market situation while we sell building rights with less potential.

Improvement of the existing portfolio

Project starts are the engine of our operations. In order to start projects once demand has turned around, Bonava needs to have building rights ready to start. Between the acquisition of land and the start of construction, significant development work needs to take place where we take into account the type of housing units the land is suitable for, the type of housing units in demand in the local market, and how the permit process is structured. Additionally, the construction process itself is planned sustainably and efficiently.

We have been actively engaged in optimising the existing portfolio of building rights, and we have actively participated in zoning plans for the purpose of increasing the value of our land. We have also assessed where we have the greatest potential to create profitable projects in the years ahead, in a new market situation, and during the year we divested land and relinquished option agreements for land where we felt there was less potential.

Thorough decision-making process

Investments made in land and projects are weighed carefully against where they could generate the best return, and are preceded by a thorough decision-making process. To ensure that the investments are optimised over time and among our markets, Bonava’s Executive Management Group – with representatives from all of the business units – are part of the company’s Investment Committee.

Strengthened regional presence

Bonava endeavours to strengthen its regional presence in order to utilise synergies and deploy its resources efficiently, with the goal of becoming a leading player in its regions. Since the suppliers are local and the regulatory requirements differ among regions in the same country, there are efficiency gains to be had by concentrating larger business volumes in the same region.

Developing operations through partnerships

This strategy is open to partnerships and mergers where, together with other players, we pursue larger projects or build up entire city districts. It may also be a question of acquisitions of companies or ongoing projects in regions where we already have a strong presence and wish to bolster this.