CNBC Business | The Slussen  project, Stockholm

The Slussen  project, Stockholm

The centre of Stockholm is about to get a much needed facelift, says Scott Berman

An already buzzy quarter of central Stockholm is generating even more heat now that plans for a long-gestating project are finally inching forward. 

The Slussen (“locks”) project is designed to replace a crumbling, 1930s-era knot of walkways, bridges, boat locks and even an underground transit station for bus, tram, and subway traffic in Södermalm. Developers envision Slussen instead as a sexy junction between Södermalm and tourist magnet Gamla Stan (Old Town), itself on an adjacent island.  

In April, and with huge fanfare, the city chose a proposal by London’s Foster+Partners and Stockholm’s Berg Arkitektkontor. The concept emphasises public transit, foot and bicycle traffic, and includes a plaza for public events and a waterside walkway. The scale of the planned buildings matches that of structures already found in the area. In addition, the design features a wooden dock to be built on the Old Town side of Slussen in order to extend the pier farther out into the water, allowing more room for cafés with outdoor seating. A glass building will be built near the current subway entrance so as to not obstruct views of the area’s older buildings and the design also allows for the addition of a possible tram line connecting Slussen to Norrmalmstorg in downtown Stockholm.  

Its approach, a nod to the current economy, offers the potential for a variety of uses. Construction reportedly is expected to start in 2012 and will cost €544m. Stakeholders expect the project to accelerate the already far-along gentrification of Södermalm. Over the last 30 years the quarter has become more fashionable — unsurprisingly given its proximity to Gamla Stan — and there has been an influx of young, educated and affluent residents, and more rental units converting to condominiums. There’s a Soho vibe about the neighbourhood, with plenty of trendy boutiques, restaurants and bars, particularly so now given Stockholm’s current high standing with the international arbiters of cool. 

Yuppie apartments and boutiques notwithstanding, Slussen is also a key juncture between Lake Mälaren and the Baltic Sea, with locks a crucial component of the infrastructure. Renovating the point’s waterworks, including systems to handle more storm water, will be a major component of the project, says Olle Zetterberg, chief executive of Stockholm Business Region. It’s an aspect, he notes, that makes the overall process that much more complex. 

In fact, it will be “quite tricky” to sort out everything, says Stockholm project manager Mårten Frumerie. He says a key advantage of the winning concept is its flexibility, with its many options for commercial, office, retail and residential development.  

Cecilia Henriksson describes the area as potentially a key destination. Not surprising — she’s senior project leader for Stockholm’s KF Real Estate, which together with Gyll Rapids Real Estate has a deal to develop a 35,000m2 underground retail space at Slussen. 

There’s also need for more hotel rooms, with only one hotel in the immediate area now. According to a recent study commissioned by the city, the current lack of affordable hotels could stifle tourism growth.  

Still, Zetterberg ponders what such a “huge construction” project will bring to the area in a broader sense; after all, “there’s been so many U- turns” along the way. Some things seem likely, however. Property values will continue their climb, there won’t be any new skyscrapers looming over Gamla Stan, and there will be challenges and controversies ahead.  

The whole idea has seen “20 years of debate,” which, given the need for renovation, has had Zetterberg scratching his head throughout. However, with the main political parties now supporting a new Slussen concept, he’s confident that central Stockholm and its Södermalm quarter will finally see some big changes.