Serneke revokes agreement with Svenska Bostäder

“We regret that we have been unable to find a consensual solution to the increased cost of the project and that the delivery of the homes will therefore be delayed, particularly when there is considerable need for new housing. Svenska Bostäder refuses to shoulder increased costs for which they, in our opinion, are responsible, leaving us with no alternative other than to terminate the contract,” says Daniel Modéus, General Counsel at Serneke.

Serneke and Svenska Bostäder signed the turnkey contracting agreement for the Plankan block at Hornstull in Stockholm’s Södermalm district in April 2019, which was also when construction commenced. The project comprised 158 apartments in total, including 66 rental apartments on two new stories added to an existing property. In the courtyard, a new circular building was to be constructed containing 42 rental apartments and 50 student apartments. The original order for the project amounted to SEK 480 million. According to the original plan, the project would have been completed in December 2021.

Following the commencement of the project, Serneke has performed foundation work and some construction on the new apartments. Serneke will secure the site and phase out its undertaking in the project in an orderly manner.