Peab, a Nordic construction and civil engineering company, has been commissioned to build rental apartments in Trelleborg, Sweden, at a contract worth Skr101m ($9.23m).

The customer is Sjöormen, a wholly owned subsidiary of Alsingevallen, a real estate company based in Trelleborg.

This development will enhance the residential infrastructure south-east of Stortorget on the Nygatan side in Trelleborg.

The project involves the construction of two tower blocks with basements, one with six and the other with ten storeys.

The top two floors are designated for venues, contributing to the local community's amenities. In total, 34 rental apartments will be built, addressing the increasing demand for housing in the area.

Alsingevallen owner Bengt Nilsson said: "We’re happy and proud that Stadsparkshusen is finally getting started and we have signed leases for most of the premises. There will be a restaurant on the first floor and a dental clinic on the second."

The project is structured as a turnkey contract, with construction set to commence in January 2025 and completion expected by February 2027.

The project will be registered by Peab in the fourth quarter of 2024.

Peab region manager Peter Lindstedt said: "We’re very proud to have been entrusted with building more homes in Trelleborg and to contribute with our expertise. This is a great example of our local community building."

Peab has its headquarters in Förslöv on the Bjäre Peninsula in southern Sweden. The company undertakes construction projects across Sweden, Norway, Denmark, and Finland.

It recently secured another major contract to build a new office building, complete with a 60-space garage and a bomb shelter, for LKAB in Kiruna, Sweden. The contract is valued at Skr459m.

Additionally, last month, Peab was contracted by Trollhättan Energi for the construction of the new Överby waterworks in Trollhättan, Västra Götaland County, Sweden, with a contract value of Skr580m.