It's now that we're getting started

Anders Bakken Eriksen, acquisition director and partner at Bonum, is also one of the founders behind the company. Together with Espen Tollefsen Lundkvist and Stefan Moltke-Hansen Yan, they have built a billion-kroner company in just a few years. Among other things, Eriksen is responsible for the acquisition department in the company, and works primarily with transactions and financing on a day-to-day basis.

It was not a given that Eriksen would enter the property sector. In 2004, he completed his national service in the forests of Indre Troms, in the Armoured Battalion in the army, and for the next three years he worked in the Armed Forces.

– When I first entered the Armed Forces, I wanted to do it properly. I didn't want a half-hearted service in a kitchen, I wanted a real challenge, with a service that had a bit of excitement to it. That's why it ended up with 'reconnaissance' in the armoured battalion. The unit was intended to serve in Afghanistan, but due to a budget overrun in the Armed Forces, the assignment was allocated to the army's standing professional units, explains Eriksen, noting that once he has trained for an assignment, he wants to complete it. That's why he applied to Telemark Battalion (TMBN) after his initial service.

– In the troop at TMBN, everyone was drilled in absolutely everything from A to Z, and many had worked in the position for years. Coming into an environment where everyone is exceptionally professional and skilled in their jobs was very inspiring. People generally also had little difficulty in simply getting on with the job, and that's something I've taken with me into Bonum, he says.

Eriksen believes that one of the most important things he learned in the Armed Forces was to seek solutions to problems.

– You face problems all the time and it's the exception to the rule that everything goes according to plan. Nor is it the case that you can ask 'what do we do now', you just have to quickly find a solution to it. That mindset is very ingrained in the system, there is always a way to the goal, he explains.

OPTIMISTIC

The other partners at Bonum describe Eriksen as very optimistic. His ability to think positively combined with looking for solutions is something they value highly. This, combined with being close to very different people, focus on team building and camaraderie, the acquisition director believes he learned in the Armed Forces. He is also grateful that at a young age he had several trips to Afghanistan, which puts into perspective the safe framework we have in this country.

– It's a good experience to have early in life, especially when you grow up in safe surroundings on Nøtterøy. You get a bit closer to how the world really works when the children there ask for water and pens, rather than school leavers' cards, he says, emphasising how well off we are in Norway.

The Armed Forces also taught him to 'push' himself, and understand how much capacity he actually has. For even though everyday life can feel exhausting, Eriksen believes we often have much more to give.

– Very few of us have physically heavy and demanding jobs, and we always have quite a bit more to give, it's always possible to 'push' yourself quite a bit further. I learned to know these limits in the Armed Forces, and tell myself when the day feels tough, that we are quite far from being truly under pressure, he says.

When asked why he wanted to go to Afghanistan, he answers that this is something he has reflected on several times. For Eriksen, it's threefold: he reiterates that he was determined to complete an assignment together with the team he had trained with, whilst it was also about a thirst for adventure.

– Someone has to do it too. If you're going to be part of NATO and expect others to help your country, you also have to contribute, he believes.

SHARE TIPS FOR THE TROOP

In 2007, Eriksen began studying business economics at the BI Norwegian Business School. He has always been interested in numbers and finance. At TMBN, during the troop's hour, he even gave share tips to the other soldiers.

– Between the situation updates on the world's conflict areas, it happened that I gave share and investment tips at the end of the session. I think there were even some who made a bit of money from it, he says and laughs. Before he thinks for a moment and continues: – I started with shares after my confirmation, with the money I received then. I opened an account in my mother's name and 'traded' during break times.

He didn't know specifically what he wanted from his studies, but that it was broad and provided many opportunities. During this time, he bought his first flat with his friend, Espen Tollefsen Lundkvist, in Vidars gate in Oslo.

– We were looking for a renovation project with a good location, and we found it. We thought we were good at project management and made good choices, and there was a nice profit on it. That's why we did five more flats, he explains, and it was after this that they began to coordinate others, more as a project management thing.

– At one point, the money we had was tied up, and we had got a taste for the organisational side and realised we could make money doing it for others, as a contractor. Then we needed a structure for it and we started Bonum, he explains.

At that time, Eriksen still had two years left of his studies, and empty lecture halls at BI were used as meeting rooms in the evenings.

– We started with coordination of external contracting, and we spent a lot of time working out how one could differentiate oneself from the typical tradesmen who perhaps presented things in a worse way than they should. We had a lot of focus on sales during this period, because if you can get hold of the good jobs, that's where you make money. It went quickly, we primarily focused on bathrooms, we saw that you can earn good money there since it requires a lot of coordination of many different professional groups, he explains.

Then they grew rapidly in both size and scope of projects. Bonum worked according to this model for a few years, before it became too clear that those who really make money are those who own the property.

– Then we realised we had to buy these properties ourselves for this to become interesting. Then we started buying raw lofts and individual flats on a larger scale, explains Eriksen.

Bonum had the contracting side for a few years, but they stopped doing external contracting when the property portfolio was large enough for the contractors to carry out their own projects.

– For a few years we only did our own projects, but where we are now we have become a typical residential developer, with external parties taking care of the construction. Going forward, the vast majority will be outsourced as turnkey contracts, he says.

Right from the start, they have had a common thread in what they have done, and regardless of the size of the company and the job, the focus has been on finding something that sets them apart. It shouldn't be standard. They have continued this into the architecture today, and when they plan larger projects, they should be designed with an eye for detail and an overall design that will stand the test of time.

– It will be critical going forward, I think, to develop properties and homes that don't blend into the crowd, but stand out positively. These are exciting times with a lot of proper focus on what is actually in demand, and home buyers are setting increasingly higher standards. We are actively working to ensure that we stay ahead here, both in design, sustainability and functionality, he explains.

Being part of building something is fun, Eriksen thinks. Whether it's a company or a property. But he doesn't hide the fact that there is a lot of work behind Bonum. Bonum has been and is a big part of his life, even though he also has a partner and two children. There is a lot of money and time behind the company, and many years with a very modest lifestyle, where all income has gone to the business.

– This has been a hectic but exciting time. You get to see things come into being that will stand the test of time, and that's fun. At the same time, experiencing that everyone is involved in making Bonum good, we have a very positive trend going amongst the employees, everyone is on the journey. People come to work and deliver every day, I'm proud of that, he emphasises, noting that the industry has received them very well. Even though they are a relatively new player and challenger, he feels that the attitude is that there is enough property for everyone.

NEVER SATISFIED

– It's now that we're getting started! We've laid a good foundation and hired skilled people, people who are better than us. We attract many of the right people, now the foundation is laid and the systems are in place, this is scalable and works in a good way, and we are really ready to deliver, he says enthusiastically.

Bonum is well established and set up for further growth. With approximately 60 employees, the value chain's processes are systematised and can handle further growth.

– Our area planners can take on more projects without it necessarily meaning hiring more people. The market is okay, we believe it's moving towards normalisation. Land prices, however, have not quite followed the fall in housing prices yet. If you've got a figure in your head from a commercial broker in February last year, it takes a bit of time before you let it go, explains Eriksen, and continues: – We have a very systematic approach to searching and buying, with a dedicated department that is actively out there finding new projects. We search in all areas and map all relevant properties. Why do we do that? Well, we're not big enough to sit and wait for projects to fall into our lap, we have to actively go out and hunt.

He describes Bonum's portfolios as safe, with low sales risk, where the properties are spread across many segments and geographical areas, mainly within Greater Oslo.

– We've gained a good position in the 'high-end' segment, and there is of course some risk there, but we are conscious and see that it has a positive effect generally. We should always deliver quality and something that stands out, regardless of the project. Part of our strategy is and will always be innovative thinking. We are never satisfied with where we are, we must develop further, he stresses.

That doesn't mean Bonum should do everything alone. They are open to doing projects for other property owners, if they need a partner who can develop the property. They already do this today with Miliarium Bolig, and they are in dialogue with several others.

– It's not always the case that everyone has the time, resources or capacity to develop all projects alone, and then we can be a collaborative partner, he says. It can either be other professionals with whom we can create a complementary team, or private individuals who need a professional developer to realise the potential of their property.

CLEAR STRATEGY

Going forward, Bonum will increase its presence along the commuter network and transport hubs. They believe the urbanisation trend will only continue, and that many will work in Oslo and commute from other places.

– We've had a position advertised in Østfold to see if we can find good local expertise there, we already have a department in Drammen, and we envisage taking positions in other cities in central Eastern Norway, he notes. We have great faith in seeking out the really good plots locally and delivering a product that stands out in the market, he says.

When asked where Bonum will be in ten years, Eriksen answers that they have already been through different business models and phases in the company, and that he sees no reason why they shouldn't continue to grow at the same pace, if not faster. Eriksen adds that they have a long-term approach and are a player who is here to stay.

– Growth happens exponentially faster when you reach the levels we're at now, with projects in significantly larger volumes. We will continue to challenge and accelerate forwards. As I said, it's now that we're getting started, so just stay tuned!