Skanska Assigned to Build Latest Office at PaddingtonCentral

Skanska has been chosen as the contractor for Two Kingdom Street, a 13-story, 255,000-square-foot office building in the PaddingtonCentral development in London’s West End.  Work on the project will begin immediately, according to a prepared statement, and is scheduled for completion in January 2010. The contract with Skanska is valued at about $174 million. In addition to office space, the building will include 22,000 square feet of high-end studio space.  According to a January announcement from the developer, Development Securities PLC, Two Kingdom Street will be funded by a joint venture partnership of Morley Fund Management and Quinlan Private. That announcement pegged the building’s total development cost at more than $545 million.  The building, designed by Kohn Pedersen Fox, is directly across from One Kingdom Street, a 12-story, 260,000-square-foot office building that Skanska completed in February for Development Securities. Last year, software company Misys PLC committed to a 15 year prelease for 73,000 square feet in the building.  Kingdom Street, the backbone of PaddingtonCentral’s second phase, will eventually total 1 million square feet of Class A office space, encompassing two additional buildings that have not been designed yet. In addition, a 206-room, four-star Novotel New Generation hotel currently under construction–to be operated by Accor–will join the existing Hilton London Metropole and Hilton London Paddington, both of which are in the surrounding Paddington Waterside area. Headquartered in Stockholm, Skanska has 60,000 employees in Europe, the United States and Latin America and had sales in 2007 totaling approximately $23.5 billion.