Skanska Sells Hotel Development for $53M
- Feb 13, 2018
Skanska has disposed of its hotel project Gradienten in Jönköping, Sweden, for SEK 430M, or around $53 million. Developed by Skanska Sweden, the firm sold the development to Balder. The asset transfer will take place upon completion of the project, scheduled for the first quarter of 2021.
The hotel will feature 18 stories and 229 keys. Totaling 132,396 square feet, the property will also offer conference space and a restaurant. The construction contract is worth SEK 330M, or around $40.7 million. The zoning plan and building permit for the hotel is in place and construction is set to begin in the first quarter of 2018. Recently, Nordic Choice Hotels signed a 20-year leased for the operation of the hotel after the building is completed. Skanska partnered with them last year on the firm’s development of a 503-key hotel adjacent to the Arlanda Airport in Stockholm, Sweden.
The transaction will be booked in the Commercial Property Development stream and the construction contract will be included in the order bookings for Skanska Sweden in the first quarter of 2018.
Rendering courtesy of Skanska