Swedish model – properties for research and education

Akademiska Hus – a HEI landlord

Akademiska Hus has a market share in Sweden of about 60 per cent. This means that we are the biggest real estate owner and landlord for HEI (higher education institutions) and research in Sweden. Today there are about 200 other property companies besides us that rent premises to the higher education institutions in Sweden. 

The grant from the Swedish state to the higher education institutions is adapted to cover the cost of premises, which accounts for approximately 12 per cent of the total costs that colleges and universities have, regardless of who is the landlord.

Market rent

Part of Akademiska Hus’ remit is to charge market rents, which means that they are on a par with other landlords for universities and colleges in Sweden for comparable premises. The rent level is affected by, among other things, location, type of property, condition of the premises and contract period.

If a state-owned property company were to start subsidising rents, the result would skew the competition in relation to other private property companies, which cannot deviate from market rents in their operations. This in turn would affect the many higher education institutions that do not rent from us. Such skewing would also be in violation of current competition law.

Transparent rental model

Our rental model has been discussed with representatives from universities and colleges for many years, and we are transparent about how our rental model works. The rental levels in our agreements with universities and colleges are evident in the Swedish National Financial Management Authority's compilation of all governmental lease contracts, which can be accessed here.

Like most property companies, we have a clause in our rental agreements that entails an increase in rental prices based on inflation measured in the consumer price index (CPI). Between 2010 and 2021, when inflation was low, the rent increase based on the CPI has averaged 1 per cent. The increase in inflation since 2022 is having an upward effect on the levels for Akademiska Hus’ rental prices, just as costs and price levels are affected in society at large. The October CPI 2023 was 6.5 percent and that is the figure used as the basis for rent indexation for 2024.

Internal rental arrangements at the centre of education

The rent that Akademiska Hus charges the centres of education is usually divided among the various departments of the colleges and universities within each centre of education, along with other expenses for facilities, which are not charged by Akademiska Hus.

The departments are then charged an “internal rent” that often also includes costs for central premises such as common areas, cleaning, and security. The internal rent that departments pay per square metre can therefore be higher than the price per square metre that Akademiska Hus has agreed with the centre of education.

At present, public authorities, as the majority of the country's universities and colleges are, generally cannot own property. The state's property supply is instead based on authorities renting premises on the open market.

In connection with the Provision of Premises Reform and the reorganisation of state-run property management in the early 1990s, it was determined that property management should be separated from use of premises and land, which would provide a more accurate picture of costs for land and premises in the state budget. Moreover, property management must also be conducted, as far as possible, with a market return requirement, property management should be conducted in separate profit centres and the Swedish state should have a dedicated ownership role. These guidelines have been confirmed on multiple occasions since then, in both government inquiries and bills.

The centres of education receive grants from the State to cover rental costs including an annual upward adjustment. Akademiska Hus, in turn, shall clearly charge rent based on market terms, while taking into account the risk associated with the rental relationship. This is clear and in accordance with the property guidelines approved by the Swedish Parliament. The lack of a profit-generating component also skews the playing field against the competition.

Akademiska Hus owns and manages over three million square meters of premises area. A key part of our efforts towards climate neutrality is to reduce the actual energy demand of our properties. Our goal is to halve the amount of energy delivered by 2025, with 2000 as the base year.

Akademiska Hus has chosen to take overall responsibility for the energy used in our buildings and not just focus on the energy used for property management. This means that we count the tenant's energy for computers and lighting in our energy goals. The work to reduce energy use and environmental impact is something we want to take place in collaboration with the tenant. A great deal of effort is also being put into influencing the energy system towards a more sustainable energy supply and demanding and creating new renewable energy.

Objectives and concrete measures

• Akademiska Hus works according to the motto "a saved kilowatt hour provides the best climate benefit" and based on consumption in 2000, the proportion of energy delivered per square metre will be reduced by 50 per cent by 2025.
• We control our energy work by creating energy plans that are followed up during the year and provide clarity on what is expected of us. We will carry out energy projects that correspond to 28,000,000 kWh in volume annually. This means that we annually streamline away an energy volume equivalent to about 1,000 villas.
• We continuously monitor the environmental impact of our energy purchases in terms of, among other things, carbon dioxide, and since 2010 all electricity purchased has been guaranteed of origin.
• Akademiska Hus works with active cost-cutting measures through ongoing supervision of, among other things, windows, tightness and closed doors. We have continuous monitoring, supervision and optimization of fan and heating systems.

In collaboration with our customers, we want to clearly inform about energy use and its environmental impact in order to change consumption patterns. Our goal is to contribute to the ongoing dialogue on how we can work together more efficiently and consume less, to the benefit of us all.

Do not hesitate to contact us if you want to know more about Akademiska Hus' sustainability work.

As an individual, it can be difficult to see how you can influence an entire campus's energy consumption, but the fact is that with a few simple rules of memory, we can make a big difference together.

Keep in mind that:

• Turn off the lights in empty rooms, such as offices, classrooms, corridors and break rooms.
• Turn off your computer when you go home for the day.
• Immediately report dripping taps, especially hot water, and other unnecessary energy consumers.
• Before you go on vacation, make sure to turn off the cold in your room and the classrooms you work in.
• Make sure that cooling and heating are not on at the same time in the same room.
• Do not air out excess heat during the heating season - instead, ask the caretaker to arrange for it not to occur.

Do not hesitate to contact us if you want to know more about Akademiska Hus' sustainability work.

In Akademiska Hus' construction process, it is close to the customer. We have a well-developed construction process and concrete planning programmes that involve the right skills and are based on customer requirements and the complexity and size of the buildings. We have developed this way of working together with our customers for many years.

The process varies depending on the type of project and the form of contract. Collaboration contracting involves greater collaboration between Akademiska Hus and the contractor. This leads to greater efficiency in the projects and also helps to make use of the contractors' knowledge and experience. In general, the construction process consists of the following different phases:

Early stage – Case preparation

In the early stage of the construction process, case preparation and investigation take place. This is initiated by the fact that a need for premises has arisen. To define which premises are needed, a business description and overview of the functional requirements that exist in the new premises are made, in order to map both the customer's needs and the property owners' requirements for the property.

CASE | Veterinary and Animal Science Centre (VHC): Discussions had been held for a long time between Akademiska Hus and the Swedish University of Agricultural Sciences (SLU) about their need for new premises, where the big question was whether to renovate or build a new one. Finally, a decision was made on a new building. A parallel assignment was announced among a number of architectural firms, where Nyréns Arkitektkontor was judged to have the best proposal.

Programme Phase – Programme Documents

During the programme phase, programme documents are prepared for the project, where, for example, basic decisions are made about the building's size, technical standard and design in general. The programme documents are a summary of the prerequisites for a project and constitute the overall basis for decisions on continued planning.

CASE | VHC: SLU started the programme work and after about a year, Akademiska Hus was involved and the programme documents were completed.

System Stage – System Documents

At this stage, the technical systems and materials that constitute the optimal solutions for the project's requirements are investigated. The system documents provide a picture of the planned building, its structural design, technical installation systems and form the basis for a cost estimate for the upcoming work. The project's environmental plan and work environment plan are also established at this stage.

CASE | VHC: The work on the system documents was relatively complicated because the buildings are very special and contain laboratories, stables and other special premises. During the work, there was great commitment from the organisation, which contributed to a good collaboration between Akademiska Hus and SLU. The system documents were completed in March 2010.

Construction document stage – Construction documents, procurements

Based on the system documents, construction documents are prepared, which are the execution instructions that the contractors use to produce the tender price. Procurement of contractors is then made.

CASE | VHC: Since the project concerned a complex building and process, the decision was made to use a collaborative contract. An inquiry went out, and after an evaluation that largely consisted of interviews with prospective project members, Skanska was contracted for the assignment. A collaboration agreement was signed and negotiations and planning regarding budget, timetable and financial follow-up began. The construction documents were compiled in the form of packages, which formed the basis for the procurement of subcontractors and materials. Skanska participated with comments during the design phase.

Construction Phase – Production

During the construction production phase, the physical production of the project's buildings and facilities takes place. Great emphasis is placed on testing of technical functions, so-called coordinated testing, before the final inspection that concludes the construction production phase.

CASE | VHC: During the production phase, regular construction meetings were held on production planning and the like, as well as regular steering group meetings with representatives of Akademiska Hus and Skanska, where quality, environment, work environment and staffing were important issues, among other things. During the course of the project, a number of changes were also implemented, which were handled jointly by Akademiska Hus, Skanska and SLU.

Handover stage – Follow-up, management

After the project is completed, the premises are handed over to the customer, and the building is transferred to management. Follow-up meetings are held, to sort out any unresolved issues and take advantage of the opportunities for experience feedback to future projects.

CASE | VHC: After the customer's work on furnishings and equipment at the beginning of the year, occupancy began in May 2014. The evaluation of the project shows that all parties were very satisfied. Above all, the success factors consisted of a very good collaboration between SLU, Akademiska Hus and Skanska, in adherence to the schedule and cost budget, and in a delivery that was permeated with high quality.

This means that most of our procurements will be advertised publicly and that Akademiska Hus will open up to European suppliers to a greater extent than has previously been done.