Carl Haakon “Bobo” Garder: From rental apartments to billion-dollar fortune

Stone by stone

After studying real estate and finance at Arizona State University in the 80s, Haldenseren returned to Østfold to put into practice some of what he had learned in the States.

– There have been some partnerships up and down, but I started alone, he says.

In the beginning, Carl Haakon bought apartments and ran a rental business, before it gradually became “too much work and fuss”.

– So I sold them to start with commercial property, he says.

It would turn out to be a profitable decision. He hasn’t looked back since.

Like father Like Son

– I probably bear the mark of that, says Carl Haakon about his study stay in Arizona.

He points to what the Americans are good at: thinking big and new.

– There they lift up those who do well, instead of dragging them down.

Carl Haakon says that his father, Carl, also studied abroad. And 30 years after he went there himself, his son Carl-Stener started at Arizona State to study finance.

In his role as CFO of CG Holding, he is deeply involved in the family business’ real estate operations. Carl Haakon brags about his son:

– Carl-Stener has a better financial understanding than I do. He is purely financial. I never explained anything to him twice.

– He is more technically skilled than me, so we complement each other, Carl-Stener replies about his father.

At graduation in 2018, Carl-Stener received the award Summa Cum Laude, the highest possible distinction that can be achieved on completion of higher education. He also believes that his study stay in the “land of opportunities” has shaped his view of business and ambitions.

Financial crisis and rising interest rates

It is said that “Bobo” has not lost any money. Two business decisions in particular have given him a reputation for being able to see into the glass ball.

Number one, when in 2006 he sold what he had of commercial property. As is well known, the financial crisis occurred in the following years, and property values ​​plummeted.

Number two, when five years ago he got rid of all debt. By being completely equity financed, GG Gruppen does not have to deal with the high interest costs that these days create challenges for many property companies.

– It’s about daring to do what you believe in, he says, and explains that they try to look into the glass ball and be forward-looking.

One of the reasons why they are present at Mipim is about just that, to hear what they think and are concerned about out in the wider world. And what they see ahead on the horizon.

However, he acknowledges that there have also been flukes.

– I was born with luck, he says.

– Have you ever gone on a rampage?

– Not really. We haven’t had any bad luck yet.

(The article continues below the picture)

“Bobo”

– Why “Bobo”?

– It’s a nickname from childhood. I have a 15-month-old brother who couldn’t say brother or Carl Haakon. So then it became “Bobo”, and the nickname stayed.

Carl Haakon tells about when he was once on a trip in Australia and decided to do a little test. He bought a postcard, and wrote three words before sending it off: Bobo, Halden, Norway.

– It wasn’t in the mailbox when I got home, he says.

Recently he also received an e-mail from a fellow student he had not spoken to since his studies 40 years ago. “You were easy to track down,” the friend wrote, referring to the nickname.

Strict risk discipline

“To build stone by stone with little debt and risk”, is GG Gruppen’s unwritten mantra.

– We could probably be three times bigger, but we could also be gone, says Garder senior.

– Strong risk discipline is important to us, they say in unison.

It is also the reason why they have not had a loan for five years.

“Bobo” says that they “don’t let good opportunities pass by”, but that at the same time they say no to nine out of 10 requests. – You have to choose what you believe in and dare to go for it, he repeats.

Family business

– What is it like to work so closely with your family, do you always agree on things?

– No, we are not. But we becomes agree by discussing us forward, says Carl Haakon.

– It would have been much more difficult if we had a different view of risk, says junior, adding that he and his father are “fundamentally the same when it comes to thinking long-term”.

They say that the organization is deliberately narrow, which makes them flexible. In addition, the decision-making lines are short, and the mandate is free.

– That is the advantage of a family business. We could, for example, have a board meeting here and now, as the majority of the board is represented, says Carl-Stener.

In addition to father and son Garder, the company has one more board member, their former lawyer Christian Müller.

Heritage

– It’s nice to have children with the will and ability to take over, says “Bobo”.

– There are surprisingly few companies in the industry where it is passed on to the next generation.

He says it was not a matter of course that one of the children was interested in continuing the company’s operations. For example, Carl-Stener’s sister is a psychologist and is happy to have followed a different path.

– We are all very family-oriented, says Carl Haakon.

Despite a significant amount of wealth on paper, it has not affected lifestyle and consumption to a significant extent.

– We have low private consumption in relation to what we earn, he says.

– I don’t understand those who waste money on everything. There’s no point in being a total jerk. Rather, we reinvest.

Financial income

The latest available accounts from 2022 show that GG Gruppen had a negative operating profit of NOK 7.9 million. However, significant financial income, as a result of investments in subsidiaries and associated companies, meant that the ordinary result before tax ended at just under NOK 17 million, down from just over NOK 35 million in 2022.