Lena has a demonstrated history of working in the financial service industry. Skilled in Management, Equity Research, Analytical Skills, Banking, Equities, and Capital Markets and a strong research professional graduated from Universität St. Gallen-Hochschule für Wirtschafts-, Rechts- und Sozialwissenschaften.

Lena Österberg, Head of sustainability research and strategy at Carnegie. Photo: Maria Stoetzer

Real Estate Finance and Investment (REFI) course

She visited the course in Real Estate Finance and Investment (REFI) an elective course, 7, 5 credits at the bachelor level in the bachelor programme at SBS. The course is especially designed for students, both domestic and foreign exchange students, in finance. It focuses on exploring the relevance of the objectives of real estate finance and investments in the context of the link between theoretical perspectives and practical decisions that investors in real estate are faced with.

The course supplements the student knowledge in finance by expanding the student’s understanding of financial markets to include the fundamental principles of real estate investments, financing and valuation. As such it is designed to comprise the various methods of financing and valuation that reasonably can be applied to income producing real estate and to understand the conditions under which each method can be applied. Moreover, students will carry out a thorough applied real estate valuation by using different methods of valuations.

Li Malmström Head of the course in Real Estate Finance and Investment (REFI) at the bachelor programme in Business Administration, Finance. Photo: Maria Stoetzer

Sustainability in the Real Estate sector

The sustainability issue is of great importance in the Real Estate sector, it consumes 40% of all energy in the EU and is one of the most exposed sectors to climate change. It’s all about valuation i.e. Lower financing costs, Cuts in operating costs, Better energy certification, more attractive building for tenants, all these factors will increase the value of properties in the long run.

The downside comprises the financial consequences of climate change that contributes to higher insurance costs. Cost of insurance against climate impacts estimated to more than double by 2040. Real estate is one of the sectors most susceptible to weather-related damage. The investor/owners also face higher maintenance costs as higher humidity can damage attics, facades and foundations via mold and rot.

Banks have begun to calculate the risk of credit losses on homes in low-lying areas close to the sea and flood-sensitive areas, increasing the cost of borrowing, which could impact market values. Swedish insurance company Länsförsäkringar no longer insures new construction in areas designated as unsuitable for building for climate reasons.

According to Boverket, some 150,000 real estate assets with a value of SEK224bn are at risk from coastal erosion. Buildings account for 40% of the energy consumption and 36% of CO2 emissions. 75% of the EU stock is inefficient and renovation rates remain low at ~1% pa.

The EU’s aims to  reduce energy consumption by >1/3 by 2030 what constitutes a large challenge for the Real Estate Sector and construction were among the first to be included in the EU Taxonomy and why building regulations have tightened Installation, maintenance and repair of energy efficiency equipment covers both capex of real estate companies and the equity/revenue of installation companies and benefits construction and installation companies and suppliers of energy efficiency products for the real estate sector.

These topics were the most important ones in Lena's presentation and gave us all new insights into the challenges facing the Real Estate sector.

Li Malmström and Lena Österberg. Photo: Maria Stoetzer

Thank you Lena for sharing your knowledge and expertise about climate change and the real sustainable Finance!