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Skanska sells newly constructed shopping centers in Sweden at a gain of SEK 460 M

1/24/2002 4:42 PM CET
Press release

Skanska has sold eight properties in the Stockholm, Gothenburg and Öresund regions for a total of SEK 1,194 M. The buyer is the UK real estate investor Resolution.
The gain on the sales amounts to SEK 460 M, of which SEK 400 M is reported in the fourth quarter of 2001 and the balance is expected to be cleared in the first quarter of 2002.

 Press Release


January 24, 2002


Skanska sells newly constructed shopping centers in Sweden at a gain of SEK 460 M

Skanska has sold eight properties in the Stockholm, Gothenburg and Öresund regions for a total of SEK 1,194 M. The buyer is the UK real estate investor Resolution.

The gain on the sales amounts to SEK 460 M, of which SEK 400 M is reported in the fourth quarter of 2001 and the balance is expected to be cleared in the first quarter of 2002.

Including these properties, Skanska sold real estate projects during 2001 totaling slightly more than SEK 6 billion, with a gain of SEK 2.2 billion. (The total sales amount includes Kista Entr��, which has been sold to Vasakronan for occupancy upon completion in 2003, when income recognition for this project will also be effected.)

"Today's transaction confirms the clear trend of increasingly greater interest from international investors in our project development, particularly from international property funds," says Mats Wäppling, Executive Vice President, Skanska AB. "We follow the investment market continually and cooperate closely with potential buyers of future projects. We consider that we have good possibilities of sustaining a continued high turnover in our project development."

"These sales confirm that continued investment in new projects makes sense, particularly in attractive growth markets where we already hold building rights in prime locations. There is great potential in commercial premises, retail and logistics centers in the Nordic region and in Central Europe. Rising private consumption drives demand for the type of commercial centers which we develop in locations with a strong customer base."   

The properties in this latest contract are located in the well-established retail areas of Barkarby, Länna, Väla, Knalleland and Kållered (see property list below). Four of these are among the five largest areas in Sweden. Tenants in the properties sold include Cervera, OnOff, Intersport, Elgiganten, Rusta, Siba and K-Rauta. The total floor space is approximately 95,000 sq. m. of rentable space.

Skanska's portfolio of shopping centers has been built up and developed during the past three years. Attractive areas were identified and developed in cooperation with expansive customers and the local authorities.
The customer base for the various retail areas is large, with about 3.5 million people within 30 minutes traveling time.

"The new retail areas that we have developed from the beginning have expanded rapidly to include businesses with a high and increasing level of sales," says Claes Larsson, President of Skanska Real Estate in Gothenburg. "A key factor for success is our good tenant relations which make it possible to follow the customers in their expansion."

Skanska is a leading company in project development and Skanska Project Development Sweden currently has approximately 160,000 sq. m. in ongoing projects in Sweden and Denmark. During 2001, 146,000 sq. m. were completed, mainly offices. At the present time, about 92 percent of this project portfolio is leased. Currently, Skanska is also developing a number of commercial sites in Central Europe.

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The following shopping centers are included in the Skanska sale:

Popular name  Property designation  Municipality 
Barkarby  Säby 3:22  Järfälla
Länna   Trucken 1  Huddinge
Kållered  Våmmedal 2:158 and 2:162  Mölndal
Knalleland  Armbåga 3 and Evedal 1  Borås
Väla  Marknaden 2 and 3  Helsingborg

Footnote
In accordance with the agreement between Skanska and Resolution, the buyer, the purchasing party has the right to cancel the purchase of Borås Armbåga 3. The cancellation right may be exercised not later than March 26, 2002. Armbåga 3 comprises 20,000 sq. m.

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For further information please contact:
Claes Larsson, President, Skanska Real Estate Gothenburg, Tel: +46 31-771 11 01 or +46 70 581 11 08.

Peter Wallin, Senior Vice President, Investor Relations, Skanska AB, +46 8 753 880 00 

Tor Krusell, Senior Vice President Communications, Skanska AB, +46 8 753 87 47