Skanska to expand in residential development – launches operations in the UK and Poland
Skanska’s new business plan up to 2015 will focus on profitable growth. One of the areas with the best growth potential and in which Skanska plans to invest the most in coming years is residential development.
The goal is to sharply increase the number of residential development projects in Skanska’s existing markets and to assume the position as the leading residential developer in the Nordic region. At the same time, the operations in the Czech Republic and Slovakia will return to former volume levels.
As a phase in the expansion, Skanska is now starting an entirely new unit for residential development in the UK, and will also start a residential operation in Poland.
Skanska has long had a large and successful construction operation in the UK. The financial crisis and the dramatic decline in the housing market have now created excellent opportunities for entry as a residential developer. There is a big long-term need for high-quality residences and the extensive environmental requirements on new residences will also create opportunities for Skanska.
Skanska has been focusing for some time on examining the UK market and preparing land acquisitions. The objective is to initiate the first projects in 2011 and the focus will be on the London area and nearby areas within commuting distance. The President of the operations is Magnus Andersson, who has worked in Skanska for eleven years, including as Regional Manager of Skanska Infrastructure Development.
“We foresee excellent growth potential in residential development in the coming years. In the Nordic region, our target is to become market leader and in the UK, we now have an excellent opportunity to enter the market,” says Johan Karlström, Skanska’s President and CEO.
Skanska will also initiate a residential development operation in Poland, where the Group has been a leading player in the construction market for many years. This establishment is expected to occur at a slower pace.
Both new establishments are based on the experience and expertise that exist in Skanska’s residential development, mainly in the Nordic region.
In the Nordic region, the goal is for Skanska to become the leading residential developer, both in terms of volume and satisfied customers, and to develop green residences.
Market shares will increase in the nine largest cities in the Nordic region through the acquisition of large land areas and early in the process. Increased standardization and industrialization are also necessary to keep down production costs.
Consequently, it is natural to simultaneously increase investment in Bo Klok (LiveSmart), a highly standardized and industrialized concept for good-value residences that Skanska operates in collaboration with Ikea. More than 4,500 BoKlok units have been sold since its inception in 1996, and volumes will now increase significantly in existing markets in the Nordic region. New markets outside the Nordic region will also be investigated for potential expansion.