Peab has signed a contract to sell a rental apartment project with a total of 110 apartments for an underlying property value of SEK 280 million as well as commercial premises worth SEK 40 million. The project is final phase of the first stage of Regementsstaden in Borås where older regiment buildings meet modern homes in an emerging new city borough. Peab has developed both rental apartments and tenant-owner associations as well as commercial premises that will provide the area with local services, and will continue to drive the development of future stages with mixed home ownership forms.

The rental apartment project has a total living area of 6,472 m2 and the apartment buildings will be classified according to Miljöbyggnad Silver. Construction is planned to start in the second quarter 2022 and be completed in the second quarter 2024. The project will be on Peab’s own balance sheet.

The premises comprise a fully rented office building and four buildings from the regiment period that house a hostel, bakery/café and offices, among other things. In total the leasable area of the premises is 2,694 m2.

“As community builders we’re proud to be able to develop Regementsstaden into a new exciting city borough for the inhabitants of Boras. This project is in line with our strategy to enrich these kinds of places while contributing to the Peab Group’s other business areas,” says Göran Linder, BA Manager Project Development Peab.

The premises will be turned over on February 1, 2022 and the rental apartment project in the second quarter 2024 when it is completed. Revenue is recognized upon turnover.