Skanska has entered into an agreement with The Norwegian Diakonhjem to construct a new nursing home in Oslo, Norway.

The deal, valued at Nkr578m ($56.60m), will be recorded in the company's Nordic order books for the third quarter (Q3) of 2025.

In September 2021, Skanska emerged as the winner of a competition to construct the forthcoming nursing home and was chosen as the general contractor for the project.

In late 2022, the Nursing Home Administration within the Municipality of Oslo named Diakonhjemmet as the provider for the nursing home building.

The design of the new nursing home accommodates 138 long-term care beds.

The facility will be situated near Diakonhjemmet Hospital, VID University College, and Diakonova Vocational School.

Spanning roughly 15,200m², the facility will include seven floors, an underground parking area, and spaces designated for commercial use.

It will also feature outdoor spaces, including a sensory garden and a walkway that connects to the care homes within Diakonveien Omsorg+.

Skanska Norway CEO Stein Ivar Hellestad said: “The collaboration phase has given us the opportunity to get involved early in the project, and use our expertise and experience from other health and care buildings we have realised in recent years. Together with Diakonhjemmet, we have worked purposefully to optimise the project and ensure that we choose the best solutions.

“The collaboration has been very good and we are very pleased that Diakonhjemmet has given us the assignment to build one of Oslo's largest nursing homes. The new nursing home will have great significance for Oslo's residents and we look forward to starting construction.”

The project is driven by climate and environmental objectives, aiming to achieve passive house standards and secure Building Research Establishment Environmental Assessment Method Excellent certification.

Construction is set to begin this month and is expected to be completed by August 2027.

Last month, Skanska published its interim report for Q2 2025.

The company reported revenues of Skr44.6bn, a slight decrease from Skr47.4bn; when adjusted for currency fluctuations, revenues remained steady.

This May, the company won construction and redevelopment projects in Norway and Sweden.