(update refers to paragraphs 4-6)

The property development company Titania has called off a turnkey contract for Block 12 in Barkarbystaden from Alm Equity's subsidiary 2xA Entreprenad.

The project comprises 377 homes, ground floor premises, and a garage at the future metro station.

The contract value amounts to approximately SEK 600 million and completion is planned for summer 2028.

"The fact that we are now starting up Block 12 clearly shows that we believe in Barkarbystaden and in the demand that will follow when the metro opens. Our project will be completed in the summer of 2028, so it will coincide perfectly with the opening of the metro station. With a strong mix of residential units and commercial premises in one of the area's best locations, the project is an important part of Titania's long-term work to create sustainable and vibrant urban environments," says Wojciech Wondell, COO at Titania.

Titania CEO Einar Janson points to the low number of construction starts in Stockholm.

"The number of construction starts per year has fallen sharply since 2022. Given the long lead times of nearly three years for many projects, it is only now that we are also beginning to see a sharp decline in the number of completed homes. This will continue in the coming years, 2026-2028, when the low number of construction starts in 2023-2025 will result in low volumes of new completed homes. We are starting construction in Barkarby now because we are timing it to coincide with both the start of subway service and a very low supply of newly built homes in 2028. Our general belief that it is commercially sound to act countercyclically and start construction when others are not doing so has resulted in us currently having over 2,000 homes in production in Stockholm County. That is more than any other player I know of, he says in a comment.