Peab

On June 30, 2023 - after nearly seven years of arbitration proceedings - an arbitral award in the case regarding the construction contract for Mall of Scandinavia was rendered. The arbitral tribunal concurred with Peab's claims for compensation for added expenses generated by extensive changes in the project made during the production phase and ruled that Peab was entitled to compensation of approximately SEK 1.4 billion, including default interest. An arbitral award cannot be appealed. However, a so-called challenge can be submitted to Svea Court of Appeal. In a challenge case the court considers whether or not the arbitral tribunal has committed any procedural errors. Instead of paying in accordance with the award and fulfilling its legal obligations, URW chose to challenge the award.

On May 28, 2025, after yet another two years of proceedings, Svea Court of Appeal rendered a judgment in the challenge proceedings in which the court completely dismissed the challenge concerning Peab's claims, making them irrevocable and enforceable. It has thereby been conclusively determined that the extensive changes in the project entitled Peab to compensation for the work incurred by changes and additions along with compensation for disorder and disruption. The arbitral award was set aside in a few aspects concerning URW's claim for liquidated damages for certain delays where Peab was ordered to pay SEK 37 million to URW and Peab's right to compensation for legal costs of SEK 90 million. Peab's claims have now gained legal force and are thereby enforceable, amounting to, including interest, approximately SEK 1.6 billion.

Immediately after the judgment from Svea Court of Appeal Peab contacted URW with a request for payment. Today, six days later, URW has neither made the payment nor informed Peab if it intends to. Peab has therefore filed for bankruptcy for URW's wholly owned subsidiary Rodamco Project AB. This measure has been taken so that Peab through the bankruptcy proceedings can drive in its claim from the other companies in the URW Group. According to Peab and legal and accounting expertise it is obvious by the chain of events and Rodamco Project AB's accounts that Rodamco Project AB has not been independent but instead acted on behalf of other URW companies and that URW is attempting to avoid responsibility for paying for the contractual work that URW ordered and has benefited from. During the construction period Mall of Scandinavia has been transferred from Rodamco Project AB to another subsidiary in the URW Group for a price much lower than the final cost.

In addition, Peab intends to sue current and previous board members in the companies involved.

Peab believes there is a very good likelihood that through the judicial system it will get paid for the work done.

The action does not entail a new risk assessment or any changes in Peab's accounting.

"As soon as the project was underway Unibail Rodamco Westfield has, together with its lawyers, tried to find any loophole to get out of doing the right thing. This has led to exceedingly high legal expenses and put an unnecessary burden on the Swedish judiciary system," says Jesper Göransson, President and CEO of Peab.

"After nearly seven years of arbitration proceedings and almost another two years in Svea Court of Appeal we have now won in every proceeding. We have a legally valid, enforceable arbitral award which is irrevocable and entails that Unibail Rodamco Westfield owes us more than SEK 1.6 billion for added costs. Not paying this debt is just a continuation of the same modus operandi Unibail Rodamco Westfield has had the whole time, they just don't want to do the right thing. This is truly remarkable and a mockery of the entire Swedish judiciary system," continues Jesper Göransson, President and CEO of Peab.

"Peab is entitled to this compensation and we will continue driving this case until we receive payment of what we are legitimately owed," says Jesper Göransson, President and CEO of Peab.

For further information, please contact:

Juha Hartomaa, Head of Investor Relations Peab, +46 725 33 31 45