JSC "Nuova" invested in the "Green Gallery" infrastructure, reducing electricity costs for tenants by 70 percent.
Upon acquiring the right to manage and administer the "Green Gallery," covering an area of 10,000 square meters, the Nuova group of companies embarked on infrastructure renewal works. The real estate developer announced investing nearly 0.5 million euros in advanced energy-saving, interior, and exterior renovation works, transforming the commercial space into one of the most attractive in Kaunas and allowing tenants to save up to 70 percent on electricity costs.
The business model involves listening to the challenges faced by tenants.
The "Green Gallery" located in the "Urmas Base" has always stood out in the Kaunas retail market due to its strategically convenient location. A few years ago, when AB "Nuova" took over the management of this commercial area, the focus shifted towards increasing the attractiveness of the property for both tenants and buyers.
"In this area, there is a significant concentration of small and medium-sized businesses. When developing our business model, our strategic goal was to consolidate product groups: we brought together interior and decor retailers whose range of products and services could complement each other and thus meet the needs of buyers. Today, the rental space for these product group businesses accounts for almost 60 percent of the total leased space in the 'Green Gallery,'" says Aivaras Čepurna, Commercial Director of the joint-stock company "Nuova."
The gallery is complemented by large-scale food and beverage retailers, occupying about 20 percent of the space, while the rest features everyday use, clothing, and footwear retailers, as well as activity areas for children, ensuring a more peaceful shopping experience for parents.
Tenants Also Invest Themselves
We closely cooperate with tenants on marketing issues, implement joint, unified advertising campaigns, and deploy modern outdoor advertising solutions. Thanks to the investments made, tenants have significantly reduced tax costs, increased visibility, and accessibility. Dedicated and special parking spaces are reserved for customers shopping at the 'Green Gallery' parking lot," said Commercial Director Aivaras Čepurna.
Due to the added value created in the real estate object, tenants are motivated to invest in the 'Green Gallery' themselves. Located in the gallery, 'Fade Factory Barbers Lithuania' is currently expanding its service premises and will install spaces twice as large, offering additional services.
Meanwhile, 'Vynoteka Bazė' opened the only store of this format in Kaunas at the gallery. It is the largest trading space in the Kaunas region, covering over 1000 square meters
Distant Solar Power Plant
When renovating the infrastructure and aiming to minimize maintenance costs, the real estate developer invested €400,000 in the modernization of the "Green Gallery." Out of this amount, €100,000 was allocated to heating systems, significantly reducing heating bills during winter with the "Air-Water" system.
"One of the most significant investment steps was the installation of a distant solar power plant. Thanks to this, we were able to reduce electricity costs for tenants by about 70%," said the representative of "Nuova."
Other completed works include renovated gallery facades, updated ramps, energy-efficient lighting installations, and the installation of outdoor advertising tools in line with the latest trends.
Investments are reflected in financial results
"We estimate that compared to 2022, last year the financial indicators of the 'Green Gallery' grew by 20 percent. The turnover of tenants is small, around 3 percent," says Aivaras Čepurna.
Taking over the management of the 'Green Gallery' (Pramonės pr. 14, 'Urmo bazė'), Nuova took over in 2019. At that time, the commercial space faced challenges: there was no segmentation of product groups and no anchor tenants such as 'Vynoteka Bazė,' 'Deinavos baldai,' 'Mato baldai,' 'InMondus baldai,' or the tile center 'Varduva.' Today, the gallery hosts about thirty small and medium-sized businesses.
The real estate developer plans to continue infrastructure improvement and cost optimization efforts. Immediate plans include strengthening selected product group segments, supplementing these segments with new tenants, and thus meeting customer expectations. Nuova, developing the real estate object, will also invest in improving the sales skills of tenants and other business development-related courses.
The Nuova group of companies has more than 30 years of experience in real estate and business development and management. The company has developed dozens of different financial, commercial, and residential real estate projects covering more than 100,000 square meters. Among them are such projects in Kaunas as 'Lampėdžio takas,' 'Akacijų vilos,' 'Smėliai,' and by the sea - 'Apartamentai kopose,' 'Birutės parkas,' and others. Currently, projects like 'Naujapilis,' 'Garšvės slėnis,' and others are being developed."
