Skanska expands into residential development in UK and Poland

Skanska's new business plan up to 2015 calls for an expansion of its residential development activities to Poland and the UK.

The goal is to sharply increase the number of residential development projects in Skanska's existing markets and to assume the position as the leading residential developer in the Nordic region. At the same time, the operations in the Czech Republic and Slovakia will return to former volume levels.

As a phase in the expansion, Skanska is now starting an entirely new unit for residential development in the UK, and will also start a residential operation in Poland.

Skanska has long had construction operations in the UK. The company said on Thursday that the financial crisis and the dramatic decline in the housing market have now created excellent opportunities for entry as a residential developer. There is a big long-term need for high-quality residences and the extensive environmental requirements for new residences, according to Skanska.

Skanska has been focusing for some time on examining the UK market and preparing land acquisitions. The objective is to initiate the first projects in 2011 and the focus will be on the London area and nearby areas within commuting distance. The President of the operations is Magnus Andersson, who has worked in Skanska for eleven years, including as Regional Manager of Skanska Infrastructure Development.

'We foresee excellent growth potential in residential development in the coming years. In the Nordic region, our target is to become market leader and in the UK, we now have an excellent opportunity to enter the market,' said Johan Karlström, Skanska's president and CEO.

Skanska will also initiate a residential development operation in Poland, where the Group has been a leading player in the construction market for many years. This establishment is expected to occur at a slower pace.