Nordic Modular Leasing offers Flexator’s customers operational leasing as an alternative to buying. The customers are often given the opportunity to buy the buildings outright once the leasing agreement expires. Our customers consist mainly of Swedish municipalities.
Business Concept
Flexator markets operational leasing as an alternative to buying. In such a case, Nordic Modular Leasing first buys the building from Flexator and then leases it to the customer. Lease payments include commissioning, while decommissioning is charged separately. The rent is paid yearly in advance. Contracts are normally signed for five years, but many are extended. Once buildings are returned from the customers, they are sold in turnkey condition or are rented out to new customers with the help of Flexator and Temporent.
Business Conditions
At present, Nordic Modular Leasing works primarily through Flexator's market organisation. Operational leasing requires considerable residual value, which to a certain degree requires standardisation and a predictable demand on the second-hand market.
Focus:
- Customers who are solvent
- Customer needs which are estimated to last longer than the contract term
- Professional buildings meeting a stable demand over time
- Focus on premises for schools and preschools
- Our own sales or rental of returned buildings
Operational Leasing
Operational leasing presumes that the ownership functions in all essential regards rest with the lessor. This means assuming a financial risk for the residual value. Hedging such a risk requires long-term experience, individual evaluation of each deal and an organisations set up to sell returned buildings.
Nordic Modular’s leasing operation began as early as in 1978 and those who examine the deals have a good understanding of the market. Buildings which can be assumed to be facing an uncertain demand in the future are given a low residual value. Second-hand sales are done with the help of Temporent’s and Flexator’s organisations as well as through advertising on its own website, modultorget.se.
Rental of Student Residences
In the beginning of 2010, Hagtornet Modul AB was acquired from the owner, Kungsleden AB (publ). The company is engaged in the rental of student residences in temporary modular arrangements. Hagtornet administers more than 312 one-room student flats which are rented out in volume primarily to various educational institutions, which in turn sublet them to students.