Swedish construction and civil engineering company Peab has secured an $89m contract from IKEA Fastigheter to build a new IKEA department store in Kållered, Sweden.
The new 37,000m² department store is part of an agreement between Peab and IKEA Fastigheter signed in December 2010.
Under the agreement, Peab will build 10 IKEA department stores in the Nordic area.
Peab head of marketing Christer Lund said: “In our cooperation with IKEA every department store is a milestone, a springboard to achieving our goals, of which the actual construction is one part.
“The final goal is turning over the store to IKEA and together with its employees opening its doors to curious customers.
“Several of our employees have followed all or some part of this ‘department store journey’ and done a fantastic job.”
The department store in Kållered will be the seventh of the 10 stores.
The new department store will be constructed with focus on sustainability. IKEA and Peab intend to secure BREEAM certification for the new building.
Peab region manager Stellan Haraldsson said: “It’s exciting to be part of the process of building the department store of the future together with IKEA and at the same time contribute to the development of Mölndal City.”
The ground and civil engineering work in Kållered has already begun.
Earlier in July 2018, Peab had won a $39m turnkey contract from Strawberry Properties for the construction of 251 hotel rooms on three floors connected to Quality Hotel Friends in Solna, Sweden.
The project involves the construction of an extension with 251 hotel rooms on three floors directly connected to Quality Hotel Friends. The work also includes adding a dining room and advanced reinforcement.
The hotel, located in Arenastaden, is run by Nordic Choice Hotels.
Planning has begun in a previously activated stage. The project is expected to be completed by the end of August 2020.
Image: A rendering of the new IKEA department store. Photo: courtesy Peab SE.