BUDAPEST-Skanska is selling its 322,917-sf (30,000-sm) Science Park office development here for $83.1 million. The buyer is the German fund management company SachsenFonds Gmbh, which is affiliated with LandesBank Sachsen GiroCentraleScience Park is located on the south Buda side of Budapest. It was developed by Stockholm-based Skanska in two phases. The second stage was completed this month, and tenants are currently moving in. The project is 90% leased. Tenants include a number of international companies, including TATA, EGI, Kraft, HBO and Swietelsky. Skanska’s capital gain on the sale amounts to $35.1 million and will be reported this quarter.Together with Prague and Warsaw, Budapest is one of Skanska’s prioritized Central European markets for project development. Skanska this summer started its next development project in Budapest, Light Corner. The 150,694-sf (14,000-sm) development is located on the Pest side of the city. The $27-million project is scheduled for completion at the end of 2005. Last week, Skanska announced it is exploring a possible divestment of its 80.4% stake in Skanska Cementation India Ltd. Skanska Cementation India is publicly listed in India and is primarily a civil contractor. The sale would be part of Skanska’s strategy of focusing on achieving a leading position in selected geographical core markets.In 2003, Skanska Cementation India had net sales equal to $134.4 million and an operating profit equal to $2 million. In Skanska’s consolidated accounts, the book value of the capital employed relating to the holding in Skanska Cementation India Ltd is approximately $26.8 million, including goodwill of about $14.8 million arising from the acquisition in 2000 of Kvaerner Construction, of which Cementation India was a part. Skanska says the process is at a preliminary stage and no definitive decision has been made in this regard. “The extent to which the price in a potential transaction would cover the book value of the capital employed remains to be determined,” states Skanska in an official acknowledgement of the potential transaction.

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