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The future of BoKlok modular homes shifts as Surewood takes control.
Skanska has finalised an agreement to sell its BoKlok Byggsystem AB modular housing factory in Gullringen, Sweden, for SEK 110 million (AUD $16 million). The transaction, set to be recorded in Skanska’s central accounts in early 2025, will see the facility transferred to Surewood Housing AB, a subsidiary of Gelba and Active Invest, on 20 February 2025.
BoKlok was initially developed in the mid-1990s as a collaboration between Skanska and Ikea, designed to provide affordable housing for middle-income earners. The concept gained traction, prompting Skanska to allocate SEK 250 million (AUD $36 million) between 2018 and 2020 to enhance automation and expand production by 50% at the Gullringen facility.
Despite these efforts, Sweden’s residential construction sector has faced mounting challenges, with inflation and interest rate increases contributing to a slowdown. Skanska incurred a SEK 331 million (AUD $47 million) financial setback on BoKlok in early 2023 as market conditions weakened. By 2024, the situation had worsened, leading to an operating loss of SEK 614 million (AUD $92 million).
Surewood Housing, specialising in timber housing solutions, is positioning itself to capitalise on an increasing demand for residential construction. With more than half of Sweden’s municipalities experiencing housing shortages and an estimated 52,000 new homes required annually until 2030, the acquisition is seen as a strategic move to strengthen modular housing supply.
Production at the Gullringen factory is expected to commence in the second quarter of 2025, with an initial recruitment drive already underway for 40 manufacturing roles.
Source: Skanska
Storm damage forces demolition of BoKlok modular apartments
In the UK, a BoKlok modular apartment block in Worthing, West Sussex, is set for demolition after sustaining significant storm damage. The development, part of a £12.6 million (AUD $24 million) Vivid Housing project, was compromised following extreme weather conditions during the winter of 2023/24.
Structural assessments identified weaknesses linked to delays in roof installation, with interim weatherproofing measures proving insufficient. As a result, dismantling the building has been deemed the most viable approach to ensuring long-term site safety.
BoKlok has outlined plans to prioritise sustainability throughout the demolition process, targeting a 95% material recycling rate. The Worthing site was one of three BoKlok projects signed with Vivid in 2020, encompassing a total of 400 homes.
See: BoKlok
