Nordic community builder Peab has received a contract to construct the third stage of the Trägården project in Askim in Gothenburg, Sweden.

Stena Fastigheter Göteborg has commissioned Peab for the turnkey contract, which is valued at Skr135m ($12.22m). It involves the construction of 117 new rental apartments.

Peab region manager Liselott Bergkvist said: “We are honoured Stena Fastigheter has commissioned Peab to build more apartments for rent in Askim.

“We particularly welcome building with such a distinct sustainable profile and we look forward to continuing to develop the area with Stena Fastigheter.”

The third stage is also the last phase of the project.

Construction on this phase is set to commence soon and will see the use of climate-improved concrete. Buildings will also be Swan-certified.

It is expected to be completed by the summer (June–August) of 2025.

The project seeks to achieve low energy consumption and harness renewable energy sources.

The buildings will be heated using district heat sourced from neighbouring Pilegården.

The company registered the contract in the third quarter of this year.

In July 2022, Peab received a contract to build 138 apartments for the second stage of the project and has already commenced work.

This deal comes after Peab secured two new construction projects in Finland in September 2023.