Sweden-based construction company Smidmek, a business under civil engineer Peab, has secured a frame contract for the development of rental apartment units in Södermalm, Stockholm.

Smidmek received this contract from Stockholm-based public housing company Stockholmshem.

The value of this contract is estimated at Skr143m ($13.95m).

This project comprises a new block with 151 rental apartment units of one to five rooms, a preschool, and assisted living accommodations.

The residential complex in its entirety boasts a total of 1,240 apartment units, the majority of which are ready to move into immediately.

The new homes are part of the city's investment to build 140,000 new homes by 2040.

The contract precisely defines Smidmek’s responsibilities and covers filigree plates, columns, stairways, strong interior walls, and other mounting activities.

Smidmek MD Victor Hallberg said: “We’re very proud to contribute to building this residential block on Södermalm. I look forward to our continued collaboration with Stockholmshem.”

The company will register this project in its order bookings for this year's third quarter.

Earlier this month, construction company Peab received a contract from Swedish housing company AB Stångåstaden to develop 176 apartment units, a healthcare centre, as well as other premises in Linköping, Sweden. This turnkey contract was projected to be worth Skr346m.