Business area Project Development

Project Development, which comprises Housing Development and Property Development, creates sustainable and vibrant urban environments with residential, commercial and public property. Project Development is responsible for the Group’s property acquisitions and divestitures as well as project development which generates contract work for the other business areas. Project Development works through wholly owned projects or in collaboration with other partners in joint ventures.

Housing Development develops all kinds of homes on the Nordic market such as apartment buildings in tenancy ownership, ownership and rental form as well as single homes. Property Development develops offices, premises and sometimes entire city boroughs in collaboration with municipalities and other partners. Operations are focused on the big city areas throughout the Nordic region.

Peab’s primary ambition is to work with development projects on our own balance sheet. Collaboration with other partners via joint ventures may take place from time to time during a project. The goal is to create capital efficient developments with partners that boost the business and thereby profitability.

Net sales and profit

Net sales for the first quarter 2021 in business area Project Development decreased to SEK 1,710 million (1,969). The decrease is primarily due to lower net sales in Housing Development. Operating profit was SEK 213 million (174) and the operating margin was 12.5 percent (8.8). Capital employed in Project Development at the end of the period amounted to SEK 12,853 million (13,898).

Capital employed

MSEK Mar 31
2021
Mar 31
2020
Dec 31
2020
Mkr 31 mar
2021
31 mar
2020
31 dec
2020
Operations property Driftsfastigheter 176 118 161
Investment property Förvaltningsfastigheter 112 114 112
Project and development property
Projekt- och exploateringsfastigheter
9,656 10,932 9,060
of which housing development rights varav bostadsbyggrätter 5,303 5,144 4,819
of which commercial development rights varav kommersiella byggrätter 601 584 585
of which unsold part of ongoing housing projects varav osåld del av pågående bostadsprojekt  2,214 3,042 1,730
of which ongoing rental projects in Sweden
varav pågående hyresrättsprojekt i Sverige
597 946 1,100
of which ongoing commercial projects 
varav pågående kommersiella projekt 
293 524 226
of which completed property varav färdigställda fastigheter 304 218 311
of which other varav övrigt 344 474 289
Participation in joint ventures Andelar i joint ventures 1,830 1,585 1,873
Loans to joint ventures Utlåning till joint ventures 1,240 1,119 1,213
Working capital and other Rörelsekapital och övrigt -161 30 -230
Total Summa 12,853 13,898 12,189
of which Property Development varav Fastighetsutveckling 3,795 3,648 3,766
of which Housing Development varav Bostadsutveckling 9,058 10,250 8,423

Key ratios

Jan-Mar
2021
Jan-Mar
2020
Apr-Mar
2020/2021
Jan-Dec
2020
Jan-mar
2021
Jan-mar
2020
Apr-mar
2020/2021
Jan-dec
2020
Net sales, MSEK Nettoomsättning, Mkr 1,710 1,969 7,241 7,500
of which Property Development varav Fastighetsutveckling 30 122 283 375
of which Housing Development varav Bostadsutveckling 1,680 1,847 6,958 7,125
Operating profit, MSEK Rörelseresultat, Mkr 213 174 1,708 1,669
of which Property Development varav Fastighetsutveckling 10 25 967 982
of which Housing Development varav Bostadsutveckling 203 149 741 687
Operating margin, % Rörelsemarginal, % 12.5 8.8 23.6 22.3
of which Property Development varav Fastighetsutveckling 33.3 20.5 341.7 261.9
of which Housing Development varav Bostadsutveckling 12.1 8.1 10.6 9.6
Capital employed at the end of the period, MSEK
Sysselsatt kapital vid periodens utgång, Mkr
12,853 13,898 12,853 12,189
Orders received, MSEK Orderingång, Mkr 2,507 1,670 7,777 6,940
Order backlog, MSEK Orderstock, Mkr 6,149 4,885 6,149 5,151
Average number of employees 1) Medelantalet anställda 1) 264 341 264 290

1) Calculated on rolling 12 months

Net sales

per geographic market, rolling 12 months

Own housing development construction

Jan-Mar
2021
Jan-Mar
2020
Apr 2020-
Mar 2021
Jan-Dec
2020
Jan-mar
2021
Jan-mar
2020
Apr 2020-
mar 2021
Jan-dec
2020
Tenant-​owner associations, share housing and residential limited companies Bostadsrätter, ägarlägenheter och bostadsaktiebolag
Number of production-started homes during the period
Antal under perioden produktionsstartade bostäder
662 1) 503 2,450 2,291
Number of sold homes during the period
Antal under perioden sålda bostäder
657 787 2,552 2,682
Total number of homes under production, at the end of the period
Totalt antal bostäder i produktion, vid periodens slut
3,821 4,538 3,821 4,014
Portion of sold homes under production, at the end of the period
Andel sålda bostäder i produktion, vid periodens slut
74% 72% 74% 73%
Number of repurchased homes on our balance sheet, at the end of the period
Antal återköpta bostäder i egen balansräkning, vid periodens slut
222 245 222 222
Rentals Hyresrätter
Number of production-started homes during the period
Antal under perioden produktionsstartade bostäder
253 75 680 502
Number of sold homes during the period
Antal under perioden sålda bostäder
91 95 4
Number converted to tenant-owner associations during the period
Antal under perioden konverterade till bostadsrätter
206 434 228
Total number of homes in production, at the end of the period
Totalt antal bostäder i produktion, vid periodens slut
719 2) 568 719 763

1) Includes 206 homes that have been converted from rentals

2) Of which 419, respectively 58 percent, are under contract to be sold upon completion

Development rights for housing

Number, approx. Mar 31
2021
Mar 31
2020
Dec 31
2020
Antal, cirka 31 mar
2021
31 mar
2020
31 dec
2020
Development rights on our own balance sheet Byggrätter i egen balansräkning 18,800 20,000 18,900
Development rights via joint ventures Byggrätter via joint ventures 4,400 4,600 4,400
Development rights via options etc. Byggrätter via optioner m.m. 9,800 9,700 9,700
Total Totalt 33,000 34,300 33,000

Scheele Promenad

Lund

Time of completion of our own ongoing housing developments 1)

1) Refers to Swedish tenant-owner associations and own housing developments, Norwegian condominiums and share housing and Finnish residential limited companies

Property Development

Net sales and operating profit from operations are derived from acquiring, developing, maintaining and managing wholly owned property, shares in the profit from partly owned companies as well as capital gains/losses from the divestiture of completed property and shares in partly owned companies.

During the first quarter 2021 net sales were SEK 30 million (122) and operating profit was SEK 10 million (25). During the quarter some operations connected to air travel and tourism have been negatively affected by the corona pandemic which lowered operating profit by around SEK 20 million compared to the first quarter 2020.

Capital employed in Property Development was SEK 3,795 million (3,648) at the end of the first quarter 2021. A large part of the capital employed consists of shares in partially owned companies as well as loans to partially owned companies. The table below presents the larger ongoing property projects per March 31, 2021. Last year contracts were signed for the sales of the office buildings in Helsingborg and Solna to Annehem Fastigheter.

Varvsstaden

Malmö

Ongoing property projects

Type of project Location Rentable area in m2 Degree rented, % Recognized value, MSEK Total investment at completion, MSEK Timepoint of completion
Level of completion, %
Typ av projekt Ort Uthyrningsbar
yta, m2
Uthyrningsgrad, % Bokfört värde, Mkr Beslutad investering, Mkr Tidpunkt färdigställande
Färdigställande-grad, %
Office building Helsingborg Kontor Helsingborg 2,900 88 104 106 Q2-2021 98
Office building Solna Kontor Solna 4,300 100 135 194 Q3-2021 70
Sports hall Sundsvall Idrottshall Sundsvall 14,700 100 116 223 Q2-2022 52
Total Summa 355
of which operations property varav driftsfastigheter     104
of which project and development property varav projekt- och exploateringsfastigheter     251

Significant joint ventures

Point Hyllie Holding AB

Develop, own and manage the office property The Point as well as own and manage the hotel property Värdshuset 5 (Operator Quality Hotel View).

Peab’s share: 50 percent
Partner: Volito
Location: Hyllie, Malmö
Recognized value on properties March 31, 2021: SEK 1,354 million (1,309)
Major ongoing projects: No major ongoing projects

1) Valued at market price in joint venture companies. The market prices on properties that affect the recognized values in joint venture companies are not included in Peab’s accounts.