Skanska UK has pulled back on its plans to be a UK house builder, after completing the 137 homes at the company’s only UK residential scheme, Seven Acres in Cambridge.
The Swedish firm said that since moving into housing development at the end of 2010 prospects for the other markets in which it was active – construction, infrastructure and commercial development – had improved and are providing better returns for its shareholders than its housebuilding arm. The homes are almost all sold and the aftercare of residents honoured.
Skanska owns two other plots of land in Cambridge as well as one in Bath and one in Cheltenham, which it will not rush to sell. It says these were all bought when the market was depressed for a low purchase price.
The company anticipates that four jobs within the housebuilding team will be “at risk” out of a team of 25. Skanska will continue to build homes in mixed use and prime residential projects.
The company said that it was in contracts with a number of developers on the prime London side, and that its various clients were pursuing retail/residential developments.
A company statement said: “The proposal to reduce our investment in consumer-facing residential development is part of an overall business plan. This also includes recent major investments by Skanska in the UK market, including speculative office developments in London and Bristol, the redevelopment of our works site in Doncaster, the acquisition of Atkins’ highway maintenance business and ongoing investment in PFI schemes such as the redevelopment of Barts and The London.
“Skanska has full confidence in the quality of the homes it is building in the UK. We believe we have set a new benchmark standard in what is possible in the construction of sustainable homes.”
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