Peab has secured a contract to construct a new nursing home in Grums, Värmland County, Sweden, with the customer being Stiftelsen Grums kommuns hyresbostäder.

The contract is valued at Skr123m ($14.1m).

The project entails the creation of a new nursing home adjacent to the area's existing retirement home, including a connecting building.

The new facility will feature 33 apartments, common areas, and administrative offices across four floors. Additionally, Peab will develop an outdoor space and parking facilities.

Stiftelsen Grums kommuns hyresbostäder plans to lease the nursing home to Grums Municipality, ensuring local governance of the facility.

This project follows a first-phase contract where Peab collaborated with the customer to develop an optimised product, addressing quality and risks.

The project, a turnkey contract in partnering form, is set to commence this month with an expected completion in the first quarter (Q1) of 2027.

It will be registered by Peab in Q4 2024.

Peab, a Nordic construction company with 14,000 employees and net sales of Skr58bn, is headquartered in Förslöv, Sweden.

Stiftelsen Grums kommuns hyresbostäder managing director Henrik Westlund said: "Contributing to community development in Grums Municipality is important. We are meeting a vital need in the municipality by creating a new nursing home adjacent to the existing retirement home. The project will also be a valuable addition to the local environment."

Peab region manager Nils Staffansson said: "Peab is glad to continue to be part of developing Grums. Building the local community is important to us and now we're looking forward to building a really good nursing home."

This new contract follows a recent contract for Peab, where it was awarded Skr190m to build a new crematorium in Västerås for the Church of Sweden.