Skanska to launch Residential Development Business in the UK

Press release 10/12/2010 11:00 CET

Skanska has announced, that as part of its new business plan covering the period up to 2015, which focuses on profitable growth, the company will expand its residential development operations and establish a new business in the UK.

Magnus Andersson, as President, will head up Skanska Residential Development UK. Magnus has worked in Skanska for eleven years, most recently as EVP for the Nordic and CEE countries in Skanska Infrastructure Development.

For the past ten years, Skanska has developed a large and successful construction business in the UK. Building on the success of its brand and reputation in the UK, Skanska has now decided that following the financial crisis and the dramatic decline in the housing market an excellent opportunity for entry as a residential developer has been created.

Skanska has been focusing for some time on examining the UK market and preparing land acquisitions. The company plan to begin the first projects in 2011 and the focus will be on developments in the London area and nearby areas within commuting distance.

There is an high-volume, long-term need for high-quality residential properties in the UK, this, coupled with the extensive environmental requirements placed on new homes fit perfectly with Skanska’s knowledge and experience and will create great opportunities for the company.

Commenting on the announcement, Magnus Andersson, President of Skanska Residential Development UK said, “This is a very exciting time for Skanska, we have a wealth of experience and expertise in this sector through our Nordic operations. Drawing upon this will place us in an excellent position for developing our UK business and delivering sustainable homes in the UK.”

“We foresee excellent growth potential in residential development in the coming years. In the Nordic region, our target is to become market leader and in the UK, we now have an excellent opportunity to enter the market,” says Johan Karlström, Skanska’s President and CEO.

As part of its growth plans, in addition to entering the UK residential market, Skanska’s goal is to sharply increase the number of residential development projects in their existing markets and to assume the position as the leading residential developer in the Nordic region. Skanska will also establish a new residential development operation in Poland, where the Group has been a leading player in the construction market for many years.