Skanska has been awarded an additional assignment to renovate and expand the Skärholmen Centrum shopping center outside Stockholm. The design/build contract, valued at SEK 375 million (approx. 40m), is included in order bookings for the third quarter of 2005.
The new project involves CentrumKompaniet exercising one of the two options included in the contract signed last year. Including the first stage worth SEK 525 M, Skanska's total assignment for the expansion of Skärholmen Centrum is valued at SEK 900 M.
In addition, there is a further option for a third stage for approximately SEK 500 M, whereby the total project for Skanska could total about SEK 1.4 billion.
The new assignment concerns the second stage comprising about 100,000 m². Pre-engineering and preparation will begin immediately and work at the site will commence in January 2006. Work on the first stage, comprising 40,000 m², is currently in progress.
"We are very pleased to be shown continued confidence. It confirms our successful cooperation, which can now move ahead at full strength on the next stage," says Jimmy Bengtsson, Manager, Building Renovation Stockholm Region, Skanska Sweden.
"Skanska has so far more than surpassed our expectations in every respect. We now look forward to intensifying our collaboration to ensure a successful end result," says Thomas Persson, Project Manager at CentrumKompaniet, which is owned by Stockholm Stadshus AB and is responsible for the management and development of Skärholmen Centrum.
The center facility was originally built in the 1960s and the new Skärholmen Centrum shopping center is planned to be completed for the 40th anniversary in 2008. The retail floor space will be increased from 38,000 m² to more than 60,000 m² under roof, making Skärholmen Centrum the largest shopping center in the Nordic region.
Existing stores will be able to maintain their ordinary opening hours throughout the entire construction period. Currently, there are about 130 stores. The entire renovation project is part of the Southern Suburbs Vision, a City of Stockholm project to upgrade Stockholm's southern suburbs.