Lesson #3
A selective approach is essential
Not every technically feasible energy project represents an attractive investment. Returns depend not only on the technology itself, but also on factors such as asset type, location, lease structure and timing.
For example, in commercial assets with triple-net leases, tenants typically capture most of the immediate financial benefit from lower energy costs. Rather than implementing energy improvements immediately, Slättö has found that greater value can be created by aligning investments with upcoming lease negotiations, when lower tenant operating costs can support higher rents and stronger commercial outcomes.
Attractive projects must be identified through a systematic process of portfolio screening, business case evaluation, and investment prioritisation.
How we do it
What Slättö looks for in transactions
During due diligence, Slättö assesses where energy improvements are most likely to create commercial value.
Residential
Assets with geothermal conversion potential in areas with high district heating prices.
Larger 1960s–1980s properties with ventilation systems suitable for modernisation.
Assets with inefficient or malfunctioning energy systems.
Logistics & Light Industrial
Assets with shorter lease durations and opportunities to improve rental levels through lower tenant operating costs.
Assets where energy investments can support broader asset repositioning.
Hotels
Existing hotels with deferred investment needs.
Conversion opportunities where energy investments are incorporated into the redevelopment programme.