Skanska consortium lands billion order in Moscow

SKANSKA CONSORTIUM LANDS BILLION ORDER IN MOSCOW

In cooperation with Hochtief AG of Germany, Skanska’s Finnish subsidiary has landed an order to construct four high-rise buildings in Kunzewo, central Moscow.

Skanska Oy holds the largest interest in the project, with a 55 percent holding, representing a total order value of USD 130 million.

The customer is the Russian Tema Group, a company owned by Sberbank and the ZAO Tema real estate company. In addition to residential apartments, the four buildings - whose heights will range from 18 to 27 floors and which comprise a total of 130,000 square meters of floor area - will contain parking spaces and business premises. Construction begins in September this year and is scheduled to be completed two years later.

Sberbank is responsible for most of the financing, while Skanska and Hochtief have participated in arranging the proportion to be accounted for by Western Credit institutions.

In addition to the Kunzewo project, Skanska has secured an order to implement Phase 2 of the Rossiyskiy Credit Bank project. The order, which is worth USD 20 million, includes installation, interior fittings and surfacing work.

Skanska’s total order portfolio in Russia currently amounts to USD 175 million. Other major projects in progress in Moscow include construction of the British Embassy and the Smolenskaya business center.

Danderyd, August 13, 1997

SKANSKA AB

Group Public Affairs

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