STOCKHOLM, Sweden, Nov. 24, 2003 (PRIMEZONE) -- Skanska has today reached an agreement with Nordisk Renting AB regarding the sale of a project involving an ongoing design/build contract, currently being constructed by Skanska in central Uppsala. The value of the transaction amounts to SEK 430 M.
Skanska Sweden is constructing a new administration building for the Police Authority and the Prison and Probation Authority in Uppsala County and the Vasteras Regional Public Prosecution Office. The building of approximately 25,000 square meters has been leased in its entirety to the three tenants with a 15-year rental agreement.
The sales is being reported as income from contracting, with the revenue recognized in accordance with the percentage of completion method during 2003 and 2004. Part payment has already been received corresponding to costs incurred and additional work yet to be carried out. The final payment will be received in connection with the completion of the total project in July 2004, at which point the building is scheduled for occupancy and Nordisk Renting AB will assume ownership.
Skanska Sweden developed this total solution to meet the authorities' requirements for new modern premises on an attractive site and with a rental arrangement attractive for a long-term owner.
"With this solution, we have generated additional value for all parties, both for those who will use the building and the new owner," says Hans Johansson, Skanska Sweden's business developer.
This and previous releases can also be found at www.skanska.com
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