Sweden-based construction company Skanska will build 392 rental apartments in Norrköping under a partnership agreement signed with Lundbergs.
According to the company, the contract is worth about SEK560m.
In partnership with Lundbergs, Skanska said it will design a total of 11 houses that will be between six and eight storeys high, with underground parking facilities.
The new buildings are expected to be environmentally certified according to Green Building Silver.
At the time of construction, Skanska will primarily focus on energy-efficiency, ventilation and indoor environment.
Tenants will be able to manage their monthly utility bills by using the individual hot water metres.
Construction of the new rental apartments is scheduled to start in December, depending on the final building permit, under a phased programme.
Completion is set for 2018 and the last house will be ready for occupancy by the end of 2019.
Recently, Skanska invested around $26m in a new residential tower development in Boston, US.
Skanska USA Building, which worked as the construction manager for the development, secured an $88m contract with a joint venture of Skanska USA Commercial Development and Prudential Real Estate Investors.
The group reported SEK145bn ($17.33bn) sales in 2014.
Image: Design of the new Skansa buildings. Photo: courtesy of Skanska.