{"id":76879,"date":"2024-08-30T10:00:53","date_gmt":"2024-08-30T07:00:53","guid":{"rendered":"https:\/\/testi-e2c55b704894.senaatti.fi\/current-topics\/news\/senaatti-konsernin-puolivuotiskatsaus-vuokranalennuksia-virastoille-kulujen-hallinnassa-ja-kiinteistojen-myynnissa-onnistuttiin-hyvin\/"},"modified":"2024-10-15T09:32:55","modified_gmt":"2024-10-15T06:32:55","slug":"senate-groups-half-year-report-rent-reductions-for-agencies-successful-cost-control-and-property-sales","status":"publish","type":"post","link":"https:\/\/testi-e2c55b704894.senaatti.fi\/en\/current-topics\/news\/senate-groups-half-year-report-rent-reductions-for-agencies-successful-cost-control-and-property-sales\/","title":{"rendered":"Senate Group\u2019s half-year report: rent reductions for agencies, successful cost control and property sales"},"content":{"rendered":"<p><strong>Senate Group, which is responsible for state-owned properties and premises is reducing rents of government agencies and institutions by a total of around \u20ac40 million. Despite the challenging market situation, Senate delivered better-than-expected results thanks to excellent property sales. Building investments continued to be at an exceptionally high level and will again reach a new record this year. At the same time, Senate had dozens of ongoing facility projects aimed at delivering significant savings in the premises costs of agencies and institutions.\u00a0<\/strong><\/p>\n<p>Group revenue at \u20ac492.3 million slightly exceeded that budgeted. The result for the first half of the year was \u20ac67.1 million, which was well above target due in particular to successful sales of properties no longer needed by the government. Senate Properties\u2019 property sales generated \u20ac49.8 million. Cost control was also very successful.<\/p>\n<p>Both Senate Group\u2019s unincorporated state enterprises, Senate Properties and Defence Properties Finland, which is responsible for Finnish Defence Administration properties, implemented major actions to cut costs, especially by energy saving measures and enhancing the efficiency of public procurements. The efficiency measures carried out and the modifications to premises planned together with clients will enable savings totalling \u20ac40 million in the premises costs of agencies and institutions during 2025\u20132026.<\/p>\n<h2>Highlights in H1\/2024<\/h2>\n<ul>\n<li>During the first half of the year, Senate Group spent \u20ac329 million on property investments and construction. Senate Properties accounted for \u20ac253 million of this and Defence Properties Finland for \u20ac76 million. It is estimated full-year investments will reach \u20ac800 million, which is around 3 times higher than historical investments. Several projects by the internal security authorities and the Finnish Defence Administration&#8217;s major investments in national defence capability and the required infrastructure are underway at the same time.<\/li>\n<li>Despite the weak property market, property sales were successful and well above target: property sales in the first half of 2024 totalled \u20ac49.8 million, returning a result of \u20ac33.2 million and 35 transactions made. Successful large property transactions enabled a good result in property sales. The most significant transactions were sales of plots in Pihlajaniemi, Turku and Maakaarenkuja in Viikki, Helsinki.<\/li>\n<li>The Group continued the procurement development programme aimed at savings of \u20ac100 million by year-end 2029. Good progress has been made with the programme and procurement savings were \u20ac13.6 million during the first half of the year.<\/li>\n<li>Government shared work environment projects were carried out across Finland. In the first half of 2024, shared work environments in Kouvola, Lahti, Lappeenranta and Pori were fully completed and brought into use. In addition, the first parts of larger projects to be implemented in stages e.g. Kuopio and Rovaniemi have been brought into use.<\/li>\n<li>One of Senate Group&#8217;s key strategic goals is to prevent indoor air problems and to promptly resolve problem situations. In addition to the previously developed approaches, a new tool, the Site Indoor Environment Survey and the Indoor Environment Index (SOI), were introduced to prevent indoor air problems in a building already during the construction phase.<\/li>\n<li>Taking biodiversity into account has been highlighted as one of the Group&#8217;s responsibility focus areas. During the first half of the year, the implementation of projects that support biodiversity and promote carbon sequestration has continued in several locations. In addition, the Group&#8217;s nature roadmap has been drawn up, which defines objectives, measures and indicators for promoting biodiversity until 2030.<\/li>\n<\/ul>\n<h2>Tuomas Pusa assumed the post of Senate Group President and CEO on 1 July 2024:<\/h2>\n<p>\u201dWe\u2019re well on track with implementing our strategic goals. Preparedness measures, customer experience development, savings in premises costs, shared work environments, zero tolerance for indoor air quality problems and implementation of corporate social responsibility goals are progressing to plan.<\/p>\n<p>I assumed the post of CEO with enthusiasm and confidence. At Senate Group, we have highly talented people, extremely interesting clients and play a significant role in working for Finland. However, we need to remember that we have to redeem the justification of our existence from our stakeholders every day and this requires constant learning and development. Our mission is to bring benefits to central government and in turn to Finland as a whole.<\/p>\n<p>Jari Sarjo, who was at the helm of Senate Group since 2012, retired in summer 2024. Under his leadership, we delivered significant results and reforms. The state&#8217;s cost-price rent principle, putting customer experience at the centre, Senate becoming a leader in indoor conditions and introducing new ways of working to central government administration have brought benefits both to our clients and the entire industry. I would like to thank Jari very much for his leadership.\u201d<\/p>\n<h2>Senate Properties\u2019 and Defence Properties Finland\u2019s half-year reports<\/h2>\n<p>Senate Properties\u2019 H1 report contains information about the Group\u2019s financial performance and key events as well as descriptions of how Senate Properties has met the goals set by Parliament and the Ministry of Finance. Defence Properties Finland\u2019s H1 report describes how Defence Properties Finland has met the goals set by Parliament and the Ministry of Defence.<\/p>\n<p><strong>You can download the H1 reports (in Finnish) from our websites.<\/strong><\/p>\n<p><a href=\"https:\/\/testi-e2c55b704894.senaatti.fi\/app\/uploads\/2024\/08\/Senaatti-kiinteistot-puolivuotiskatsaus-kesakuu-2024.pdf\">Senate Properties&#8217; half-year report 1\u20136\/2024 (in Finnish)<\/a><br \/>\n<a href=\"https:\/\/testi-e2c55b704894.senaatti.fi\/app\/uploads\/2024\/08\/Puolustuskiinteistot-puolivuotiskatsaus-1-6_2024.pdf\">Defence Properties Finland&#8217;s half-year report 1\u20136\/2024 (in Finnish)<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><em>Senate Group is an internal government service unit and an unincorporated state enterprise group under the Ministry of Finance which provides premises and related services centrally for central government administration. Senate Group consists of Senate Properties and Defence Properties Finland unincorporated state enterprises. Senate Properties is tasked with acting as the work environment and facilities specialist of the Finnish government. Defence Properties Finland started operations on 1 January 2021 as a subsidiary unincorporated state enterprise of Senate Properties and focuses the properties, functions and services serving the Finnish Defence Administration.<\/em><\/p>\n<p><em>Under the government leasing system, rents charged by Senate Group are based on a cost-price principle and Senate Group makes no profit from the rents charged to central government clients. Rental income covers all the costs arising from the properties.<\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Senate Group, which is responsible for state-owned properties and premises is reducing rents of government agencies and institutions by a total of around \u20ac40 million. Despite the challenging market situation, Senate delivered better-than-expected results thanks to excellent property sales. Building investments continued to be at an exceptionally high level and will again reach a new [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":75756,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"class_list":["post-76879","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","senaatti_type-bulletin"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Senate Group\u2019s half-year report: rent reductions for agencies, successful cost control and property sales - Senaatti<\/title>\n<meta name=\"description\" content=\"Senate Group, which is responsible for state-owned properties and premises is reducing rents of government agencies and institutions by a total of around\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, 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