Sweden's correctional infrastructure is set for a dramatic transformation as NCC partners with Specialfastigheter to deliver one of the nation's most ambitious prison projects. The Trelleborg facility represents a €500m+ investment opportunity that could reshape the Nordic correctional real estate market.
The massive undertaking will create a state-of-the-art correctional complex housing 800 inmates across 110,000 m², making it comparable in scale to major commercial developments. What makes this project particularly attractive to investors is the guaranteed long-term rental income from the Swedish Prison and Probation Service, backed by Sweden's stable public finances and growing demand for modern correctional facilities across Europe.
"This is one of Specialfastigheter's largest investments. It is a large and complex project with a long timeline, where we, together with the contractor and the client, will create a modern facility that will provide our tenant, the Swedish Prison and Probation Service, with the best possible conditions to run their operations efficiently," says Claes Magnusson, Head of Project Development at Specialfastigheter.
The facility's sophisticated design will accommodate 600 staff members and integrate three distinct operational zones: a remand prison, a correctional institution, and premises for the national transport unit. This multi-functional approach represents a significant shift towards efficiency-driven correctional real estate that could influence similar projects across Europe.
"Correctional facilities are complex projects that require specialist expertise, and the size of the facility in Trelleborg means that there will be additional challenges in many areas. NCC has extensive experience in completing large high-security projects, which will be invaluable for this important project," says Tobias Holmqvist, Division Manager at NCC.
The project's partnering structure offers particular appeal to institutional investors seeking exposure to defensive real estate sectors. With European governments increasingly prioritising prison modernisation and NCC's proven track record in high-security construction, this development signals a broader opportunity in the underserved correctional real estate market, where demand consistently outstrips supply across Nordic countries.
People mentioned:
- Claes Magnusson, Head of Project Development at Specialfastigheter
- Tobias Holmqvist, Division Manager at NCC
Companies mentioned:
- NCC - Construction contractor and project partner
- Specialfastigheter - Property developer and project owner
- Swedish Prison and Probation Service - Tenant and end user
Image Source: vitmodell skiss oversikt - render - KrookTjader
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