Nordic construction group Peab AB (STO: PEAB-B) said on Wednesday it has been commissioned by Bonava Hagamarket AB and Bonava Sverige AB to deliver housing and retail facilities in the new Hagaliden district in Umeå, Sweden, with contracts totalling SEK121m.

Peab will order register the project in its Construction business area in the third quarter of 2026.

The work comprises two turnkey projects. One involves building a grocery store for Swedish supermarket chain Coop for Bonava Hagamarket AB. The second, for Bonava Sverige AB, covers the sustainable housing project Brf Motorn, including two tower blocks with 45 tenant-owner apartments, a terraced courtyard above the Coop store and associated landscaping and parking areas.

The housing and retail space is being developed on a former car dealership site and will become a new residential area focused on sustainability, local services and improved living conditions.

Construction of both the Coop store and Brf Motorn is scheduled to start in September 2026, with completion expected in May 2028. The project also includes an option for a second phase, Brf Cylindern.