AF Bostäder is building tram system
In an effort to strengthen the link between historic and future Lund, AF Bostäder has decided to build its own tram network starting from the student housing area Vildanden in western Lund.
Construction of a tram system has long been a topic of discussion at AF Bostäder. In fact, from time to time a number of employees have made month-long study visits to the United States to learn more about private infrastructure initiatives. Lund Municipality’s recent decision to launch a tram project made the decision-making process much easier for AF Bostäder.
“The participation of additional stakeholders is naturally welcome in this major initiative. Lund Municipality seems to have the same vision for Lund as we have. We hope to benefit from an exchange of experience and synergies. For example, it is probably a good idea if we do not build over each other’s tracks,” says Henrik Krantz, CEO of AF Bostäder.
The project will be financed through rental income, whereby AF Bostäder will use a method called loyalty rent. Going forward, AF Bostäder tenants will be charged an extra 20% over their regular monthly rent as a form of innovation support.
“Charging for a project that does not directly contribute to more student housing may seem unfair to an outsider, but you must bear in mind how much the students of Lund love student life here and how happy better public transport in the city will make them,” says Dag, who is responsible for communication in the project.
The aim is for the route to follow the so-called Party Line through Lund, starting in Vildanden in the south-west, travelling through Clemenstorget and AF Borgen, and then reaching Nya Kämnärsrätten, where AF Bostäder intends to build up to 1,500 new housing units by 2028. The plan is to use as much of the existing street network as possible.
“There’s no point in reinventing the tram wheel, so to speak. As we say in the property development sector, dig where you stand. The same applies here and we expect it to go well, how difficult can it be?” says Magnus, former Property Development Manager at AF Bostäder.
Unlike Lund Municipality, AF Bostäder will not move or take down any trees in the project as this is not in line with the company’s sustainability policy.
“It will be a bit tricky, but it will be worth it. Naturally leaving the trees in place will affect the speed, and we do not expect to exceed normal walking speed when the trams are rolling,” concludes Magnus.