Member access

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

SummaryQuotesChart AnalysisNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll 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;

Stocks mentioned in the article : Macquarie Group Limited
React to this article
3d ago MACQUARIE : The HOPE Program Awarded Prestigious Fellowship Opportunity from Mac..
11/13 CASBAA Welcomes Frank Rittman To Its Board of Directors And New Member Compan..
11/12 MACQUARIE GROUP LTD : ex-dividend day for interim dividend
11/11 GENWORTH FINANCIAL : long-term care seen worthless by KBW, pressuring CEO
11/04 MACQUARIE : Capital Announces Agreement to Form New Investment Corporation Focus..
10/31 Malaysia's Astro Honoured with CASBAA Chairman's Award 2014
10/31 MACQUARIE : hails 35pc growth in first-half profit
10/30 MACQUARIE : announces $A678 million half year profit
10/30 MACQUARIE : Gordon Cairns Joins Macquarie Group and Macquarie Bank Boards
Duration : Period :
Macquarie Group Ltd Technical Analysis Chart | MQG | AU000000MQG1 | 4-Traders
Income Statement Evolution
More Financials
Dynamic quotes