Serneke’s operations are divided into four business areas, Construction, Civil Engineering, Project Development and Property Management, which are described below.
Business Area Construction
Business Area Construction accounted for 72 percent of the Group’s income over the 12 months ending in September 2016. The business area offers comprehensive services in the construction sector, focusing on major construction contracts in all of the metropolitan regions. The Group’s operations mainly comprise construction of housing and the execution of contracts in commercial retail and industrial properties.
The business area’s customers mainly comprise municipal and private property companies, state-owned companies, major project development companies, industrial companies, central government, municipalities and county councils, developers of commercial centers, and Business Area Project Development. The largest single customer group comprises public clients, who, as per 30 September 2016, accounted for 69 percent of the business area’s sales.
Business Area Civil Engineering
Business Area Civil Engineering accounted for 10 percent of the Group’s sales over the 12 months ending in September 2016. Within Business Area Civil Engineering, Serneke performs groundwork and constructs and installs foundations, infrastructure, wiring and cabling, power plants and port facilities. The offering within Civil Engineering is being built up and the business area performs projects along the west coast and in Skåne. The business area is in a growth phase and its strategy is to follow Business Area Construction’s geographic establishment, expansion and focus on major projects to become a nationwide provider of civil engineering services in earnest.
The business area’s customers mainly comprise public sector clients, including municipal and state-owned companies, private housing companies and the Project Development business area. The largest individual customer group is public clients, who accounted for approximately 44 percent of the business area’s sales as per 30 September 2016.
Business Area Project Development
Business Area Project Development accounted for 18 percent of the Group’s income over the 12 months ending in September 2016. Project Development is responsible for the Group’s acquisitions and development of projects and development properties. Within Project Development, Serneke acquires developed or undeveloped land, which is refined into housing and commercial properties.
Serneke’s offering covers the entire value chain, from market monitoring, land acquisition, project planning, design and production to the sale of the property. The development of properties is conducted by the Group alone or with partners. The development process is carried out in close cooperation with municipalities, landowners, architects, property agents, end customers and other stakeholders. The Group generates value through flexible solutions based on customers’ requests and needs.
Project Development is primarily focused on the three metropolitan areas of Gothenburg (Region West), Stockholm (Region East) and Malmö (Region South).
Business Are Property Management
Business Area Property Management accounted for 0 percent of the Group’s income over the 12 months ending in September 2016 and is, having been founded in 2015, the Group’s latest business area. In line with the overall objective of achieving profitable transaction, Business Area Property Management develops and manages existing and acquired properties for long-term capital appreciation. Properties consist of commercial buildings and are managed through wholly owned companies or in collaboration with partners through associated companies.
Among other things, Business Area Property Management focuses on long-term relationships with customers and tenants to generate stable income over time, to then realize the value that has appreciated when the right opportunity arises. The business area also includes operating properties, and by managing properties used for its internal operations and purposes, the Group is able to retain control over rent, investments and expansions.