Optima Homes, the off-site timber building solution launched by Pace Timber Systems, has been selected to build Swedish-style homes in a partnering agreement worth around £25m.

About 500 low-cost BoKlok homes, developed by IKEA and housebuilder Skansa, will be built using the Optima system during the next three years.

BoKlok UK, a joint venture between Paramount Homes and the Hyde Group, chose Optima and Cartwright Pickard Architects for the project, which will see the first apartments constructed next spring.

Pace managing director Phil Key said: “To be associated with such a major new brand in affordable housing is excellent news for Optima and for the off-site construction sector.”