IKEA and Skanska intensify strategic cooperation for Live Smart

IKEA and Skanska intensify strategic cooperation for Live Smart The major interest in Live Smart, Skanska and IKEA's joint project for good housing at low cost, has now resulted in a decision by the two parties to intensify their cooperation. The result of this is a new independent organization, whereby the two companies will form a jointly owned consortium. "In order to satisfy the huge interest outside Sweden, particularly from the UK, Norway and Poland, it is important to have an organization in which energies are focused on Live Smart and our respective roles are clarified," says Anders Larsson, who is the product manager for Live Smart. Since Live Smart was developed just over two years ago, the concept has aroused a huge amount of interest and has become a popular alternative for people who want to find or change homes. The parties have succeeded in creating favorable housing with a high standard at low cost. This cooperation has shown particularly that new production does not have to result in high rent levels, and the current rent levels are up to 25-30% lower for Live Smart than for comparable apartments. "The debate about high living costs has never been more intensive than it is now. Consequently, it is not strange that Live Smart attracted great interest from the public, construction experts and housing politicians during this summer's H99 housing exhibition in Helsingborg," says Anders Larsson of Skanska Residential Construction. The second generation of Live Smart is on show at H99, but with a new, more urban façade. The building will subsequently be moved from the exhibition at Mariastaden to North Helsingborg. "In addition, we have begun to notice increasing interest from abroad and, although the concept was originally intended for export, it is obvious that we have succeeded in developing a form of living that is arousing interest everywhere," Anders Larsson continues. The most important reason behind the intensified cooperation is the ability to satisfy the increasing interest effectively. In practical terms, the intensified cooperation also means that more people will be employed and that a separate organization will be built up. Live Smart housing is available in two different versions and each building consists of six apartments of between 48 and 59 square meters. To date, buildings have been constructed in Helsingborg, Älmhult, Örebro, Gävle and Sundsvall. Recently, the municipal housing company in Borlänge also decided to invest in the Live Smart concept. Malmö, August 24, 1999 SKANSKA SVERIGE AB Information For additional information, contact: SKANSKA BOSTÄDER AB IKEA SVENSKA FÖRSÄLJNINGS AB Anders Larsson Carl-Gustaf Friström Mobil +46 70-66 55 644 Office +46 42-25 26 36 Office +46 40-14 46 68 Fax +46 42-25 26 26 e-mail: anders.n.larsson@skanska.se e-mail: cgf@memo.ikea.com This and previous releases are also available on www.skanska.com ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/08/24/19990824BIT00470/bit0001.doc http://www.bit.se/bitonline/1999/08/24/19990824BIT00470/bit0002.pdf