Swedish non-profit housing company MKB Fastighets has awarded Nordic community builder Peab a contract to construct rental apartments in Malmö, Sweden.

Peab will take up this turnkey contract in partnering form, which has an estimated value of approximately Skr408m ($37.22m).

The project will be located in Kirseberg and will include the construction of three buildings of six to eight floors.

The company will develop roughly 264 apartment units within these three buildings, alongside six other premises.

Peab region manager Peter Lindstedt said: “We’re proud to be able to contribute together with MKB to more homes for Malmö residents. This is a good example of our locally produced community building.”

Construction is set to commence in the first quarter (Q1) of next year, with the project anticipated to be completed in Q2 2027.

Peab will enter this project in its order bookings for Q4 2023.

MKB Fastighets production manager Christina Lundby said: “We are happy to have signed a contract, and we are ready to start building despite significant challenges in the outside world. Thanks to our collaboration with Peab, we have succeeded in bringing this project to port.”

Peab has also secured a traditional contract carrying a value of Skr214m from Regionsfastigheter in Jönköping County to restore and expand Värnamo Hospital in Sweden.