11 Mar 2011
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Skanska's green deal is MIPIM talking point

Skanska and Arup’s new green venture aims to generate turnover of £200m, Building reported. The contractor has formed partnerships to work with Arup and GE to provide a “one stop shop” service to landlords to retrofit property and make it more energy efficient.

At this week's MIPIM property development extravaganza in Cannes, the deal was seen as evidence of an improving market in the London property sector, the magazine reported.

A survey of 51 senior executives working for commercial property developers, commissioned by Skanska, showed that 53% agreed that there is an increased interest from businesses in green retrofit and refurbishment. A third (33%) thought it would be the next big thing for the commercial property sector.

The partnership venture is targeting £26m in revenue this year and has already been contracted to overhaul a major central London property.

Craig Sparrow, head of UK Green Business at Skanska, said the deal would show the market what it could do with a high profile refurbishment: “We are retrofitting a major London property in April, when the facade will come down.”

The partnership with Arup and GE is widely seen as a rival to Brookfield Green, a similar venture between WSP, Woods Bagot and contractor Brookfield.

Also speaking at MIPIM, London mayor Boris Johnson said that the redevelopment of the borough of Newham in east London would be the next development focus in the capital, after the Olympic park. He told delegates that “it looks like confidence is brimming,”

He added: “We’re open to JVs of all kinds. Forty five specific development proposals have been put forward so far. It’s as exciting as what we’re doing in OPLC [the Olympic park]”.

The mayor also invited developers to bid to build an 800-home, seven-acre community next to the athletes’ village on the Olympics site after next year’s Games.