Nasdaq-listed Swedish builder Peab has won a $54m contract (SEK 565m) to build five apartment buildings with a total of 397 units in Sweden’s Gothenburg, one of Europe’s fastest growing city regions.
The client is Swedish developer Stena Fastigheter. The project is the third stage of its “Ekebäckshöjd” development in Högsbohöjd, southwest of downtown Gothenburg.
241 apartments will be for rent and the rest will be for sale.
Peab said it will aim to certify the buildings under the Nordic Swan ecolabel. Some concrete elements will be made with sustainable concrete, and recycled bricks will be used for the façades.
“We look forward to working together and contributing to more homes in Högsbohöjd,” said Liselott Bergkvist, Peab’s region manager. “We particularly welcome building with such a distinct sustainable profile. Peab has both the capacity and experience to carry out these kinds of projects.”
Peab expects to finish the buildings in 2026.
Home to Sweden’s biggest port and knowledge-intensive manufacturers like Volvo, SKF and AstraZeneca, Gothenburg is one of Europe’s economic powerhouses, the City of Gothenburg says.
The total wage sum in the region is growing at a faster rate than in Sweden as a whole, and more than one in every 10 companies started in Sweden are there. 2021 saw just under 8,800 companies started.
It’s rate of population growth exceeded 1% in most of the past 10 years.
As a result, construction beats all other sectors in terms of average annual wage growth: 5.3% between 2010 and 2021, the city says.