SOLNA, Sweden--(BUSINESS WIRE)--Regulatory News:
NCC will renovate “Million Programme” housing in Fittja, a suburb south of Stockholm, in cooperation with Botkyrkabyggen. The area will be upgraded based on the residents’ need for an attractive and safe living environment. Valued at approximately SEK 1 billion, the framework agreement will extend over a six to eight-year period.
Sweden’s public utility housing stock is currently facing a major refurbishment challenge with thousands of apartments in need of upgrading throughout the country. NCC’s strategic framework agreement with Botkyrkabyggen includes refurbishing an area comprising 1,300 housing units in Fittja in the municipality of Botkyrka.
A key issue in connection with the refurbishments is to weigh the measures against the impact on rent for those already living in the area.
“NCC subscribes to a concept called Sustainable refurbishment (http://www.ncc.se/produkter-och-tjanster/hallbar-renovering/). This means that we use civic participation to create socially and environmentally sustainable residential environments while taking considerable consideration to the financial parameters for those living in the area,” says Henrik Landelius, Head of NCC Building Sweden.
For Fittja, it is a question of redeveloping the entire residential area and not just refurbishing the buildings.
“We intend to preserve and reshape what was good when the area was built. For instance, it is better for the environment and the wallet if we preserve good material and renovate kitchens. We will also make the spaces between the building more attractive and safer,” says Henrik Landelius.
The cooperation with Botkyrkabyggen will take the form of what is known as strategic partnering (http://www.ncc.se/produkter-och-tjanster/partnering/), a long-term cooperative format, where the participating companies carry out an assignment in close cooperation with the best of the project always in mind.
“Being able to take experiences from one project and use them in the next one, with the same contractor and sometimes even the exact same employees, is invaluable. We will increase capacity and gain potential for increased efficiency,” says Ulf Nykvist, CEO of AB Botkyrkabyggen.
For NCC, the agreement with Botkyrkabyggen is strategically important since NCC has a pronounced ambition to expand in refurbishment of the “Million Programme”. The first assignment for Botkyrkabyggen involves renovating two residential buildings, with an order value of approximately SEK 100 million, to be registered among orders during the fourth quarter in NCC Building.
This is the type of information that NCC could be obligated to disclose pursuant to the Securities Market Act. The information was issued for publication on May 19, at 07.30 a.m. (CET).
About NCC. Our vision is to renew our industry and provide superior sustainable solutions. NCC is one of the leading construction, property development and infrastructure companies in Northern Europe, with sales of SEK 62 billion and 18,000 employees in 2015. The NCC share is listed on Nasdaq Stockholm.
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