Peab and Unibail-Rodamco-Westfield (URW) have reached a settlement agreement that fully resolves all matters related to the Mall of Scandinavia contract. As part of the agreement, Peab will see a liquidity increase of SEK 1 billion in the third quarter of 2025. However, net financial items for the second quarter of 2025 will be impacted by a charge of approximately SEK 600 million, while net debt will remain unchanged.
Peab and Unibail-Rodamco-Westfield (URW) have reached a comprehensive settlement that brings to a close all legal proceedings and contractual matters related to the Mall of Scandinavia project. The agreement follows a multi-year dispute centered on cost overruns and project delays.
On June 30, 2023, an arbitral tribunal ruled in favor of Peab, granting the company approximately SEK 1 billion in compensation for additional construction costs caused by extensive project changes during the production phase. The tribunal also awarded Peab SEK 390 million in default interest. However, URW challenged the decision in Svea Court of Appeal, which on May 28, 2025, upheld Peab’s right to compensation for changes and disruptions but annulled parts of the arbitral award related to URW’s claim for liquidated damages and Peab’s claims for arbitration costs.
Following URW’s failure to make the court-ordered payment, Peab initiated bankruptcy proceedings against the project company, Rodamco Projekt AB, while both parties prepared to launch new arbitration processes related to the unresolved claims.
The dispute was ultimately resolved on June 22, 2025, when the parties agreed to a settlement. Under the terms of the agreement, URW will pay SEK 1 billion to Peab on July 2, 2025. Both parties will retract all ongoing legal actions, acknowledge the contract as fully and finally settled, and confirm that no further claims—including warranty obligations—remain.
The settlement amount corresponds to the compensation for construction costs awarded in the original arbitration ruling, while Peab has agreed to waive claims related to accrued default interest.
“We’re very pleased that we can finally put the legal aftermath concerning Mall of Scandinavia behind us. We received the compensation we are contractually and legally entitled to,” said Jesper Göransson, President and CEO of Peab. “To fully conclude our relationship with URW, we chose to reach this settlement agreement, which ensures we receive SEK 1 billion in payment.”
The agreement eliminates all remaining financial and legal risks for Peab related to the Mall of Scandinavia project.
