A brown-to-green transition

After acquiring this asset, Slättö identified an opportunity to improve energy performance while reducing operating costs. A targeted energy improvement programme combined heating optimisation and ventilation upgrades with an energy-efficient water heater, rooftop solar PV, and LED lighting.

As is typical for logistics and light industrial assets, tenants bear the energy costs. To align incentives, the energy investments were integrated into broader tenant and asset initiatives. The lower operating costs created by the improvements supported a rent increase, allowing both owner and tenant to benefit from the investment. This is how we addressed the "split incentive" problem in triple-net leases, where the asset owner bears the cost of the energy capex and the tenant benefits from the lower opex.