SRV Approach covers the whole value chain of construction, and increasingly also property investing, beginning with identifying trends and future needs, leading to development and execution – planning, financing, land acquisition, construction, and with e.g. shopping centre projects, also management of property until exit phase.
Projects with higher added value yield a significantly better return than competitive contracting, so SRV’s strategy is to increase the share of revenue accounted for by its own development projects. In Finland, the REDI project in the Helsinki Kalasatama district, and in Russia, the Okhta Mall in St Petersburg are examples of such projects.
SRV’s development projects are based on project development work that sets out to identify future trends impacting SRV’s business, and gain a deep understanding of customers’ business needs. By genuinely listening to customers and engaging with key stakeholders, SRV successfully connects different perspectives. The goal is to find the most suitable entity for users and the most profitable investments for owners.
SRV’s project development unit in Finland and Russia serves all areas of business and is responsible for matters such as land acquisition, zoning, concept design and finding investors and anchor tenants.
The real-estate investment company, Russia Invest, is an example of the good cooperation model developed by SRV, which the company has used to strengthen the financing of the St. Petersburg Okhta Mall project via domestic partners. An operating model developed from corresponding solutions will increase SRV’s financing capacity in the implementation of major projects as, for example, in the REDI project.
The efficiency of SRV’s project implementation is founded on a project management model based on customers’ needs – the SRV Approach, in which an SRV project is implemented in transparent cooperation with the customer.
A successful and high-quality end result is ensured through systematic project management, a management system that supports implementation, and an unbroken flow of information extending throughout the project. Project management is the responsibility of SRV’s professionals, utilising in project implementation an extensive and expert partner network.
In SRV’s projects, real estate investors are, in effect, buying anticipated cash flows. A built and fully leased shopping centre, office building or housing project is an attractive acquisition for investors, as the annual rental yield from such projects is already known.
A key aspect of project development is the correct assessment of investors’ yield requirements in the market in question. When the yield percentage sought by investors is known, the company can anticipate the cash flow required to achieve this objective when designing the project. SRV therefore only invests in projects that on completion will be attractive to real estate investors.
In its own-development projects, SRV is responsible for finding users for a project before construction begins. Finding anchor tenants is the cornerstone of project development; its success impacts the project’s start-up date.
The Pearl Plaza and Okhta Mall shopping centre projects in St. Petersburg are examples of SRV’s strong expertise in developing shopping centre concepts, finding tenants and operating shopping centres. These projects highlight SRV’s knowledge of the retail sector’s needs.