Skanska develops office in Warsaw, sells in Stockholm

Swedish construction and property giant Skanska is developing a 20,000 office project in central Warsaw. Atrium City is located on the main thoroughfare of Al Jana Pawla, where the construction group has already completed four other office projects and a hotel. The scheme is scheduled for completion in spring 2009. Skanska has invested EUR 73.5 mln in the project.

With a keen eye on both the environment and potential cost advantage, Skanska is incorporating energy-efficient solutions into Atrium City. In line with its broader corporate policy, Skanska awards prizes to internal initiatives that 'are positive for the environment and/or improve health and safety.'Skanska has been developing the inner-city area along Warsaw's Al Jana Pawla since 1997 and holds building rights for two further office projects in the same area.

Skanska also announced the sale of a Stockholm office property, transferred with leasehold right, to a company jointly owned by Swedish property company Fastighets Balder and GE Real Estate; GE will manage the building on behalf of the joint venture. The property, at Arstaang 4, was sold for EUR 49.3 mln with a capital gain of EUR 17.3 mln, and comprises three buildings with 34,000 m² of total floor space. Current tenants include Norwegian IT and media company Telenor and Lindorff, the Nordic management services provider.

Commenting on the deal, Lennart Sten, managing director of GE Real Estate Nordic said: 'This is GE's first acquisition in cooperation with Balder, but hopefully not the last. CEO Erik Selin is one of the most successful property contractors in recent years.' Selin himself looks forward to combining resources in the future: ‘this sets the stage for additional transactions'.