Nordic builder Peab has signed an agreement to acquire development rights at Hagalund in the municipality of Espoo on the south coast of Finland.

The agreement was signed by Peab with Trevian Itätuulentie 11 Ky and the city of Espoo to develop apartment buildings.

Peab will pay around €20m to acquire the development rights.

The acquisition and payment for the development rights from Trevian Itätuulentie 11 Ky will occur in Q4 2022, while these with the city of Espoo are expected next year.

The development rights in Hagalund are located in an area adjacent to Ainoa Shopping Mall and Hagalund subway station.

Peab will demolish the existing office building and build 120 new apartments on the site, which already has received zoning permit.

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Peab business area manager in Finland Juha-Pekka Eskola said: “This deal will enable Peab to be part of the renovation of the center of Tapiola [Espoo] and cement our strong role in new housing production in the area.

“We’re proud to now be able to build homes for around 300 people in the center of Tapiola, which is one of the most popular residential areas in the capital city region, well known for its architecture, location close to the sea and rich culture.”

Last week, Peab secured a contract to construct a new ice skating rinkv in Alingsås, Sweden, for Alingsåshem. This contract carries a value of $20.9m (SEK218m).