STOCKHOLM, Sweden, April 30, 2004 (PRIMEZONE) -- Skanska has sold an office property in central Prague for approximately SEK 295 M, or EUR 32.3 M. The sales gain amounts to about SEK 70 M, or EUR 7.9 M, which is being reported in the second quarter of 2004. The buyer is the German property fund management company SachsenFonds GmbH, a daughter company of Landesbank Sachsen.
The 12,600-square-meter Bredovsky Dvur property is located a few blocks from Vaclav Square in central Prague. Skanska has developed and carried out a large extension and an extensive renovation of a smaller section of the property, which was completed in 2001. At the time of the sale, 91 percent of the premises was leased, including to such tenants as the British Council, Europe Assistance and EC Harris.
"This sale is yet another successful example of our ability to develop modern premises in prime locations for demanding international tenants and investors," says Fredrik Jonsson, Vice President of Skanska Project Development Europe.
Prague, similar to Budapest and Warsaw, is one of Skanska's prioritized central European markets for project development. Skanska recently started a new project in the Czech capital -- the 11,600-square-meter Budejovicka Alej property -- scheduled to be complete in the second quarter of 2005. Skanska's investment amounts to 210 M, or EUR 23 M. Earlier this year, Skanska sold the East-West Business Center property in Budapest for SEK 380 M, with a sales gain of SEK 126 M.
In addition to investment properties and a land bank for development in the central European markets of Budapest, Prague and Warsaw, Skanska has ongoing projects with a combined area of 25,000 square meters, representing a total investment of about SEK 475 M, or EUR 52 M.
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