Skanska to Build $60M Sustainable Office Tower in Sweden

The 150,700-square-foot building will sprout up in the Hyllie submarket, the most sustainable district in Malmö.
Hyllie Terrass. Image courtesy of Skanska

Stockholm-based Skanska has announced plans for the development of Hyllie Terrass, a climate neutral office building in the sustainability-centric Hyllie submarket of Malmö, Sweden. The 150,700-square-foot project will cost SEK 590 million, or approximately $60.7 million, to complete.

In terms of office demand, Skanska’s timing with Hyllie Terrass appears to be right. On average over the next five years, office-based employment growth is forecasted to increase by 1.6 percent in Malmö, according to a December 2019 report by Savills, making the city one of  “four Nordic cities in the top 10 best future office-based employment markets in Europe.”


READ ALSO: Cross-Border Investment in US Properties Drops 54%


Skanska relied on COBE Architects to help create its vision for Hyllie Terrass, which will feature ground-level retail space and a plethora of green terraces. Part of the Sweden Green Building Council’s pilot study on ZeroCO2 certified buildings, the 12-story tower will be developed with a net-zero climate impact and will continue to operate at the height of sustainability.

The property will also qualify for LEED and WELL certification. And in keeping with the green theme, Hyllie Terrass will sit within close proximity of various forms of public transportation. The project is befitting of its location in Hyllie, which is the most sustainable district in Malmö, a city that plans to be fully carbon neutral by 2025.

The construction contract for Hyllie Terrass, the building of which is on schedule to get underway in the first quarter of 2020, is valued at SEK 420 million, or roughly $43.2 million. The office building will be ready for occupancy in the fourth quarter of 2022.

GREEN TRAILBLAZER

An active proponent of sustainable development since the mid-1990s, Skanska is also developing a mixed-use, 336-key Comfort Hotel in Solna, Sweden, which will be Scandinavia’s first net-zero hotel when it opens in 2021. The company was also behind the construction of Providence Newberg Medical Center, which, in 2006, became the first hospital in the world to be certified LEED Gold.

Additionally, Skanska played a role in making it more convenient for the development community to evaluate building materials’ carbon emissions with the co-creation of the Embodied Carbon in Construction Calculator in 2018. Also known as the EC3 tool, the calculator serves as an open-source database of construction material information based on environmental product declaration data. Skanska’s construction arm, Skanska Sweden, has committed to being carbon neutral by 2050.