Construction giant and developer Skanska announced on Tuesday that it is selling two ongoing projects to a group of pension funds in one of the largest property transactions in Sweden this year. Skanska's investment in the two properties amounts to SEK 1.25 bn (EUR 122 mln). The company estimated that 65% of the investment will have been completed by the end of 2009.
Construction giant and developer Skanska announced on Tuesday that it is selling two ongoing projects to a group of pension funds in one of the largest property transactions in Sweden this year. Skanska's investment in the two properties amounts to SEK 1.25 bn (EUR 122 mln). The company estimated that 65% of the investment will have been completed by the end of 2009.
The projects are a detention centre in Sollentuna outside Stockholm and a police building in Toftanäs outside Malmö. The combined floor space totals 40,600 m2.
The buyer is a consortium of pension funds belonging to seven leading Swedish companies, Atlas Copco, Apoteksbolaget, Ericsson, Sandvik, Skanska, Stora Enso and Volvo. Skanska's financial specialist unit Skanska Financial Services took the initiative to gather the pension funds and create the new consortium that is making the property investment. The sales gain for commercial development properties under construction was not disclosed. The development gain is reported quarterly in pace with completion of the project. Possession of the properties will be taken upon completion of the projects in autumn 2010.
'The transaction clearly demonstrates Skanska’s ability to utilize the group's collective expertise in the areas of construction, project development and financing, Skanska's president and CEO Johan Karlström said.
'I cannot imagine a better example of a win-win situation - the purchasers receive fully leased properties with stable and long-term tenants, public authorities and users gain access to state-of-the-art premises and Skanska's shareholders take satisfaction from construction and development gains,' he added.
