STOCKHOLM, Sweden, August 08, 2003 (PRIMEZONE) -- Skanska (Other OTC:SKSBF) sells four retail facilities in Central Europe for SEK 475 M - capital gain totals SEK 160 M
Skanska has sold four newly developed retail facilities, two in Budapest and two in Prague, for a total of SEK 475 M (EUR 51.6 M). The capital gain amounts to SEK 160 M (EUR 17,4 M). The price corresponds to a direct yield of slightly less than 9 percent. The buyer is an international property fund managed by the UK-based property management company Pricoa Investment Management.
The capital gain from the sale will be included in the third quarter of 2003. The transaction will be conducted through the sale of three companies; one in the Czech republic and two in Hungary.
"This transaction confirms that Skanska's strategy of project development in selected Central European markets has favorable potential. This is the first time in these markets that a property portfolio of this type has been developed and the interest from international investors is considerable," says Fredrik Wirdenius, President, Skanska Project Development Europe.
The total leasable floor space amounts to 36,000 square meters. The properties are fully leased, with the Dixon Group (Electroworld) as the anchor tenant in all properties. The average lease length is approximately 12 years.
The purchaser will take up ownership immediately for the two properties that were completed in November 2002 and the property completed in April 2003. The fourth, which is under development, will be transferred on completion in November 2003.
Skanska Project Development Europe has invested in and developed all of the facilities from the purchase of land to design, leasing, construction and now divestment.
"This deal is based on the same principles as Skanska's sale of eight retail facilities in Sweden to the British investor Resolution in January 2002. It shows that it's possible to successfully transfer a strong development concept to other property markets. It's also positive that the entire development cycle from purchase of land to divestment has been completed in less than three years, which is well in line with our goals," says Fredrik Wirdenius.
Facts - retail facilities:
Prague: Cestlice - completed in November 2002
Cerny Most - completed in April 2003
Budapest:Soroksar - completed in November 2002
Budakalasz - under production, to be completed in November 2003
Skanska Project Development Europe is initiating, developing, operating and selling commercial property projects with an emphasis on offices and commerce in Prague, Budapest and Warsaw.
This and earlier releases are available at www.skanska.com
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