STOCKHOLM, Sweden, March 30, 2004 (PRIMEZONE) -- Skanska is selling the East-West Business Center in Budapest for SEK 380 M, which is well in line with the estimated market value at year-end. The gain on the sale is SEK 128 M, which is included in the first quarter of 2004. The Buyer is Polonia Property Fund LP, managed by Allied Irish Bank.
The East-West Business Center office project in central Budapest was the first in a number of projects Skanska has developed in the Central and Eastern European capitals. The 21,100 square meter property was completed in 1991. With its high standard the East-West Business Center was a forerunner in Central European markets. Both the standard and the location have attracted international tenants to the premises, which have been well leased since the opening day.
Budapest is one of Skanska's selected markets for commercial project development. During 2003, two newly development commercial retail properties were sold. At the same time, the second stage was started of the Science Park, which Skanska is developing in the dynamic southern Buda area. The first phase, which was completed in 2002, is fully leased, with an international telecom company as the largest tenant.
The second phase, which is now being constructed, involves 15,000 square meters scheduled for occupancy during 2004. About 70 percent of the premises are already leased. The two phases of Science Park comprises a total of 30,000 square meters.
In the Central European markets of Budapest, Prague and Warsaw, Skanska has investment properties and a land bank for potential development. Currently, the company also has projects in progress with a combined area of 25,000 square meters and total investments of about SEK 475 M (EUR 52 M).
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