Kier : RE: Contracts

RNS - 1 September 2014 - For release at 0700 hours

Kier appointed preferred bidder for construction of £50m London high-rise tower

and

£25m p/a Services waterways contract

Kier Group plc ("Kier") announces further awards across its Construction and Services divisions.

The Construction division has been appointed by Knight Dragon Developments Ltd as the preferred bidder to design and build a new £50m residential tower on the Greenwich Peninsula, one of the largest regeneration schemes in Europe.

The Greenwich Peninsula project is one of the first to be constructed on the site in London and will see Kier design and construct 224 luxury apartments arranged in four blocks, anchored by a 24-storey tower, with a riverside position.  The development will include over 160 acres of residential, business and leisure space with nearly 2 miles of river frontage.  In total over 60 new development plots will be created by Knight Dragon in this brand new district for London by 2039, and the scheme will deliver over 10,000 new homes for up to 23,000 residents.

The Services division has been awarded the National Engineering & Construction Contract (NECC) by the Canal & River Trust, with an estimated annual value of £25m. The initial contract, commencing in April 2015, will be for six years with a possible extension up to a maximum of 10 years. The National Engineering & Construction Contract replaces the Omnibus 3 contract, for which Kier was the incumbent contractor since April 2009. The NECC is the Canal & River Trust's largest single contract, consisting of construction works across the Canal & River Trust system equating to approximately 100 major construction projects and over 200 minor repair projects per annum. The contract will also provide 24/7 out of hours cover and professional services support to the Trust.

Haydn Mursell, CEO of Kier, commented: "These awards continue to demonstrate the strength of the Group's capabilities. We are delighted to be working with Knight Dragon at Greenwich Peninsula. It will be a critical regeneration project for London, providing much needed housing, alongside leisure, retail and commercial space, to create a vibrant new district for the city. This particular scheme is also a testament to our high-rise development skills, which we believe will prove important in the London market as we witness a high increase in demand for high-rise schemes. " 

"The award of the Canal & River Trust contract continues to demonstrate Kier's increased scale and capability following the combination with May Gurney.  This award further strengthens our position in the growing utilities and waterways sector."

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For further information:

Faeth Birch/Daniela Fleischmann, RLM Finsbury               020 7251 3801

Kier press office                                                        07779 410964