Skanska to build business centre in Moscow for sek 400 million
Skanska's Finnish subsidiary, Skanska Oy, has been contracted to build the Alfa Arbat Centre, in central Moscow. The order is worth approximately USD 50 M, or around SEK 400 M. The customer is the real estate company ZAO Syracuse, which is owned by Russia's Alfa Group and the U.S. Athena Group, each with a 50-percent interest.
SKANSKA TO BUILD BUSINESS CENTRE IN MOSCOW FOR SEK 400 MILLION
Skanska's Finnish subsidiary, Skanska Oy, has been contracted to build the Alfa Arbat Centre, in central Moscow. The order is worth approximately USD 50 M, or around SEK 400 M. The customer is the real estate company ZAO Syracuse, which is owned by Russia's Alfa Group and the U.S. Athena Group, each with a 50-percent interest.
The Alfa Arbat Centre retail and office complex will have eight floors above ground level, with shops located at street level facing onto the centrally located shopping street, Arbatskaya. The 44,000 m2 project will also include an underground car parking facility with four levels. The project is demanding because the new Centre will be built over the existing Metro subway system. Construction work is being started immediately and will be concluded at the beginning of year 2000.
"Alfa Arbat Centre is a large and prestigious assignment for us. It is also one of the first real estate projects in Moscow that is partly funded by investors from the West. Receiving the Alfa Arbat Centre order also means that we are continuing to strengthen our position as a property builder in Russia. The Smolenskaya retail and office complex, which is one of the largest real estate projects currently under way in Moscow, will be handed over to the customer later this year," says Martti Rautee, Senior Vice President, Skanska Oy, and responsible for the Finnish company's international operations.
In 1997, Skanska Oy reported revenues of slightly more than SEK 3 billion, of which the Russian market accounted for one third. Projects in progress in Russia include the building of an ice-hockey arena prior to the World Ice-Hockey Championship in Jaroslavl, an order worth SEK 480 M. In addition, a large business and travel center is being built in St. Petersburg and several construction projects are in progress in Moscow, including the new British Embassy and a large residential area.
Danderyd, August 11, 1998
SKANSKA AB
Group Corporate Communications
For further information, contact:Martti Rautee, Senior Vice President, Skanska Oy, International Operations, telephone +358 9 6152 22 03
Cecilia Schön, Senior Vice President, Skanska Corporate Communications, telephone +46 8 753 88 00