Swedish construction and property group Skanska has announced plans to build up an investment property portfolio focused around Stockholm, Gothenburg and Malmo.
CEO and president Anders Danielsson said the move is aimed at capturing the value created and stable cash flow generated by the properties developed in Commercial Property Development. ‘The ambition is to establish a long-term portfolio of high-quality assets in Stockholm, Gothenburg and Malmö,' he said. 'These assets attain to high environmental standards, and the new stream will contribute to strengthen both our competitiveness and customer offering.'
When a property is identified as suitable it will be divested internally from the Commercial Property Development stream to Investment Properties and will be accounted for at market value. The divestment will trigger a recognition of the value created in the Commercial Property Development division. The company did not disclose the planned volume of the investment property business but said it will provide further details during its capital market day on December 7.
