Member access

4-Traders Homepage  >  Shares  >  AUSTRALIAN SECURITIES EXCHANGE LIMITED  >  Macquarie Group Ltd    MQG   AU000000MQG1

End-of-day quote. End-of-day quote AUSTRALIAN SECURITIES EXCHANGE LIMITED - 12/19
57.82 AUD   +3.32%
2d ago MACQUARIE : infrastructure debt investment solutions finances seven ..
4d ago EXCLUSIVE : Porter nearing sale of Toronto airport terminal - source..
4d agoDJSYDNEY CAFE STA : Police Negotiate With Gunman
SummaryQuotesChart AnalysisNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Skanska To Announce Financial Close On First US PPP Project

04/13/2012 | 06:22am US/Eastern

Swedish construction company Skanska AB (SKA-B.SK) is close to announcing an agreement on the financial terms for a major infrastructure project in Virginia, which entails a construction contract worth about $660 million for the company, executive vice president for infrastructure development Karl Reichelt said in an interview.

The project, part of a joint venture with Macquarie Group Ltd. (>> Macquarie Group Limited), includes the construction of a new Midtown Tunnel, rehabilitation of existing tunnels, and extension of the Martin Luther King Freeway in Virginia. Skanska has 45% of the $1.5 billion construction assignment.

The total project value is about $2.05 billion, and Skanska will make a $140 million equity investment in the project, which is the construction firm's first public-private partnership in the U.S.

"This has been highly anticipated and it is extremely important for Skanska because it is helping to fulfil our growth plans in a key market for the company," Reichelt told Dow Jones Newswires.

The five- to six-year construction contract, which will be awarded to Skanska's civil construction unit, is likely to have a margin in the lower double digits--higher than the 9.2% margin posted by the unit in 2011.

"When you're accepting the responsibility of a guaranteed on-time, on-budget delivery, and taking all the significant construction risk, you would expect the margin to be more robust than for a traditional project," Reichelt said.

He added that the internal rate of return for the project is "comfortably" within the 11% to 14% range targeted by the company for infrastructure development.

-By Niclas Rolander, Dow Jones Newswires; +46-8-5451-3102; niclas.rolander@dowjones.com

Stocks mentioned in the article : Macquarie Group Limited
React to this article
Latest news on MACQUARIE GROUP LTD
1d ago MACQUARIE GLOBAL INFR TOTAL RTRN FND : Infrastructure Total Return Fund Inc. : A..
2d ago MACQUARIE : infrastructure debt investment solutions finances seven on-shore win..
4d ago EXCLUSIVE : Porter nearing sale of Toronto airport terminal - sources
4d agoDJSYDNEY CAFE STANDOFF : Police Negotiate With Gunman
4d agoDJGunman Identified as Self-Styled Sheikh
5d agoDJPolice Say Three Dead in Sydney Cafe Siege
12/11 MACQUARIE : could be forced to rethink property lending strategy under APRA scru..
12/09DJCLSA Taps Andrew Low as International Investment Banking Head
12/04 Bidders line up for Fortum's 4.7 billion pounds Swedish grid - sources
12/01 German utility E.ON to split to focus on renewables, grids
Advertisement
Chart
Duration : Period :
Macquarie Group Ltd Technical Analysis Chart | MQG | AU000000MQG1 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes  
ON
| OFF