LKAB is purchasing the Granbacka residential area from TOP bostäder AB, the municipal property management company in Gällivare. The purchase includes 93 apartment units in eleven buildings, as well as five properties for which planning permit has been granted in Mellanomradet in Gällivare.

Mr Lars-Eric Aaro LKAB President and CEO said "This deal complements our real estate holdings in an ideal way, not least because the dwellings are well-placed geographically. Together with the new building production we have planned for Gällivare, this acquisition creates opportunities for more efficient property management and greater variation in residential offerings in terms of size, rent level and other aspects."

The purchase also means that LKAB will gain adjoining residential areas in Mellanomradet.

Mr Siv Aidanpää-Edlert President of FAB, LKAB property management company said "For practical reasons, we are working to consolidate our residential areas. This is advantageous with respect to the proximity of our rental properties in nearby Myrasen and Bäckasen. It also allows us better possibilities for developing our residential areas."

The deal also means that TOP bostäder AB will build about 40 new apartments in Forsheden.

FAB will invest in the Granbacka residential area. Particular attention will be given to outdoor environment and a landscape architect will be involved in the planning. FAB will utilize the existing planning permits, which are included in the purchase and will allow construction of 40 new apartment units.

Granbacka currently has an occupancy turnover of five to 10%. This implies that the same number of apartments are made available each year. The area will thereby play an important role in the urban transformation of Malmberget.