Swedish construction and civil engineering firm Peab has secured a $33m (SEK306m) turnkey contract from Tornet Bygg and Projekt AB to build 226 rental apartments in Umeå, Sweden.
The project called Rödäng Gardens will be built in Rödäng in Umeå, as part of the transition of the city borough.
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Tornet managing director (MD) Göran Wendel said: “Our business concept is to build and manage attractive and environmentally friendly rental apartments in large cities, so it feels great to get started on our first project in Umeå.”
Under this contract, Peab will construct two apartment buildings featuring one to four rooms as well as a kitchen.
The property will have a garage that will be equipped with charging posts, as well as an inner courtyard with green areas.
Built as per Miljöbyggnad Silver norms, the buildings will have solar panels on their roofs.
Construction works at the site will be initiated in the first quarter of 2022, with project completion expected in 2025.
Peab region manager Susanne Hallberg said: “We’re really pleased for the confidence placed in us and look forward to being part of developing Rödäng as a city borough and contributing to Umeå’s continued growth.
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By GlobalData“Our customer is forward looking and this exciting project offers sustainable added-value in the everyday life of future residents.”
Earlier this month, Peab entered into a contract to sell a rental apartment project along with commercial premises in Borås to Vatne Property AS. The rental project is valued at SEK280m while the commercial premises are worth SEK40m.
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Illustration of Rödäng Gardens project in Umeå, Sweden. Credit: Peab Bostad.
