Skanska sells ongoing office project in Malmö

Skanska is selling an ongoing office project at Universitetsholmen in Malmö, Sweden. The buyer is Vital Forsikring ASA, Norway’s largest life insurance company.

In accordance with Skanska’s information policy the purchase price or capital gain is not disclosed for commercial development projects under construction. The development gain will be reported in the quarterly reports as project completion progresses.

The transaction involves the new Court of Appeals building in the Flundran 2 block at Universitetsholmen. The 10,000-square-meter building is currently under construction. The project was started at year-end 2006 and will be completed in the third quarter of 2008. Skanska’s investment amounts to approximately SEK 255 M. The Swedish National Courts Administration has signed a 20-year lease for the entire property.

“We have managed to lease the project before initiating construction and sell it during ongoing production. This confirms that we have succeeded in our effort to develop premises that are attractive to both users and investors,” says Richard Hultin, President of Skanska Öresund. “Demand for offices is strong and we foresee favorable possibilities to continue project development at Universitetsholmen.”

In addition to the Appeals Court of Skåne and Blekinge counties, the Rent-Control Administration and Swedish Government Offices will operate in the building.

The new Court of Appeals building near the Malmöhus Castle was designed by Kim Holst Jensen at the Danish Architect firm SHL. Skanska Sweden is carrying out the construction.

Skanska Commercial Development Nordic Region is one of 14 business units within Skanska. Its task is to initiate and develop property projects involving offices, logistics and shopping centers. Office operations focus on the three large metropolitan regions in Sweden, the Copenhagen region of Denmark and Helsinki, Finland. The development of logistics facilities and volume retail properties is conducted in strategic locations in Sweden, Denmark and Finland.

Skanska Commercial Development Nordic is divided into three regional companies: Gothenburg, Stockholm and Öresund.