NORWAY —Swedish construction group Peab has moved the Bytorget development in Askim, Norway, into its construction phase after receiving a contract worth NOK 319 million, equivalent to approximately SEK 334 million. The project clients are Askim Næringspark Bolig AS and Askim Næringspark AS, which are associated with the development. The contract covers the delivery of a mixed-use residential scheme in a central urban location.
The planned development comprises 116 apartments in different sizes and around 2,000 square metres of commercial premises. Additional components include landscaped green spaces, a parking garage and a shared building for residents. The combination of housing, commercial facilities and communal amenities is intended to support a compact neighbourhood with access to public transport, retail, cultural venues and public services.
The project follows an initial planning and development phase in which Peab worked with the clients to refine the proposed scheme, establish an appropriate quality level and assess project risks and uncertainties. The transition to the second phase formalises the construction commitment, allowing the development to proceed towards execution. This phased approach can help align design, cost considerations and delivery risks before the main building works begin.
Construction is planned to start in autumn 2026, with completion expected in the second quarter of 2029. Peab has indicated that the contract will be recorded in its Construction business area during the fourth quarter of 2026. The timing places the project within a multi-year delivery cycle, with execution dependent on construction progress, coordination of building components and the management of site activities.
Bytorget will contribute to residential and commercial development in Askim, a town in Norway's Østfold region. The inclusion of retail or other commercial space alongside apartments may help create activity beyond residential use, while green areas and shared facilities add community infrastructure. The development also reflects the role of centrally located, mixed-use projects in accommodating housing demand while making use of existing transport links and nearby services.
For Peab, the contract adds a defined project to its Norwegian construction pipeline and provides revenue opportunities across residential building and associated commercial facilities. The clients will need to manage delivery, budget and quality through the construction period, while local suppliers and subcontractors may benefit from demand for building materials, engineering services and site work. The announcement does not specify the project's expected margin, financing structure or apartment sales arrangements, limiting assessment of its investment returns.
Peab is a Nordic construction and civil engineering group operating across building construction, infrastructure and related services. Askim Næringspark Bolig AS and Askim Næringspark AS are the named client entities for the Bytorget project. The contract's progression from early-stage development into construction establishes a delivery timetable for the scheme, with the next major milestones being the planned start of works and completion in 2029.
