Sweden-based construction company Skanska has received an order from fellow property developer Fastighets AB Balder to develop two apartment towers in central Gothenburg, Sweden.

The contract is separated into phases, with agreements for each stage signed individually.

Valued at nearly Skr390m ($37.57m), the production phase for the development has already been agreed upon.

The contract will be added to Skanska’s order bookings for Sweden for this year.

The project will include a seven-storey and a 20-storey building, which will include a total of 192 multifamily housing units.

Furthermore, the ground level of the site will feature business premises while a communal garage will be located beneath the residences.

Each of the apartments will be designed to allow optimum natural light penetration and feature abundant greenery. The project is targeting the Miljöbyggnad 'Silver' standard.

Construction will commence next month and is expected to be completed in the first quarter of 2027.

Earlier this week, UK National Highways selected Skanska as its preferred bidder for the Kent Roads contract for its Lower Thames Crossing project.

Meanwhile, Skanska has posted its financial results for this year's second quarter, which revealed an impact from the plunge in its residential and commercial property development businesses. This outweighed the growth in its construction unit.

The company's operating income in the three months to 30 June this year dropped to Skr1.3bn from Skr2.4bn in the prior year while revenues dipped to Skr39.9bn from the previous Skr44.8bn.