Skanska sells two Swedish office properties for EUR 80m

Swedish construction company Skanska said it has sold two office properties in Sweden for a total price of SEK 745mln (EUR 80mln) and a combined capital gain of SEK 265mln that will be recorded in the second quarter of 2008.

Specifically, Skanska has agreed to sell a 10,500 m² office building in the Lindhagensterrassen area of Stockholm for SEK 495mln to health insurer AFA Sjukforsakringsaktiebolga in a deal that gives Skanska a capital gain of SEK 160mln. The building, whose tenants include transport company Storstockhoms Lokaltrafik, the Stockholm County Council and Inspecta, will be occupied in June 2008.

The Gangaren 18 property is one of the construction company's commercial development projects in Stockholm's Lindhagensterrassn, where it has developed about 140,00 m² of commercial properties and invested about SEK 5bn since 1996.

Skanska said it has also agreed to sell the Scandinavian Center office property on Universitetsholmen in Malmo to Swedish property company Wihlborgs Fastigheter for a price of SEK 250mln and a capital gain of SEK 105mln. The new owner will take over the property, which was constructed by Skanska in 1991, in September 2008. The Scandinavian Center comprises a total 8,000 m² of office space with accounting firm Deloitte one of the main tenants.

The disposals should help boost Skanska’s results in the second quarter of the year. The company said earlier in the week that it posted an operating income of SEK 1.08bn in the first quarter of 2008, helped by a capital gain of SEK 643mln on the sale of its 50% stake in the Ponte de Pedra hydropower plant in Brazil. First quarter revenues increased 18% to SEK 31.5bn.