Skanska sells hotel and congress building in Malmö, Sweden

6/25/2012 8:45 AM CET
Press release

Skanska has signed an agreement with AFA Fastigheter on the transfer of the hotel and conference property at Malmö Kongress, concert and hotel in Malmö, Sweden. The sales price amounts to at least SEK 900 M, which will be booked as a property divestment within Skanska Commercial Development in the second quarter of 2012.

The final purchase price will be determined at transfer 2015. The sum SEK 900 M represents a minimum value, which could be adjusted upward. The project is a bundled construction, through which Skanska has utilized the Group’s financial strength to create new business opportunities. A bundled construction project is started when a long-term leasing agreement is signed.

The property is an important part of the area that will make up an entirely new district that connects Malmö City with the West Harbour. Skanska is building a hotel, conference center and concert hall with seating for 1,600 spectators. Work is conducted in close cooperation with the City of Malmö. Preliminary site works is already underway and the intention is that everything should be completed during the second quarter of 2015. Skanska will also develop offices and residential buildings in the area.

The property that is now sold to AFA Fastigheter contains the hotel and the congress part. The hotel will have 445 rooms on 25 floors and the congress section can hold up to 1,500 people. The Choice Group will operate the hotel and congress property under its Clarion brand.

AFA Fastigheter manages, develops and rents offices, hotels and residential – mainly in Stockholm. AFA Fastigheter is a part of the asset management within AFA Försäkring that is owned by Svenskt Näringsliv, LO och PTk. AFA Försäkring administrates contractual insurances for more than four million people in the private commercial and industrial sector, municipalities, counties and regions in Sweden. The total value of the assets is about SEK 200 billions, out of which SEK 18 billion is properties.

Skanska Sweden is one of Sweden’s largest construction companies, with operations in building and civil-engineering construction. The business unit has approximately 10,000 employees and revenue in 2011 amounted to approximately SEK 27 billion. In Sweden, Skanska is also active in the development of residential construction and commercial premises.

Contact: Pontus Winqvist, CFO
Telephone +46104488851

Contact: Staffan Andersson, Executive Vice President (EVP)
Telephone +46104483245