11th Mar 2015 10:48
LONDON (Alliance News) - Galliford Try PLC on Wednesday said it has reached financial close on the North East batch of the Priority Schools Building Programme and has reached a deal with Flintshire Council on the Holywell Learning Campus in North Wales.
The GBP160 million Priority School Building Programme contract, agreed with the Education Funding Agency, will see Galliford handle the construction of the schools being built in the North East of England under the programme, along with the ongoing maintenance of the schools for 25 years.
FTSE 250-listed International Public Partnerships Ltd and infrastructure investor HICL Infrastructure Co Ltd both also released statements on Wednesday about their involvement in the North East batch.
International Public Partnerships said the Amber consortium, of which it is a part, reached financial close on providing financing for the North East batch of schools.
The total capital expenditure on the schools is GBP113 million, with the Amber Consortium to provide GBP102 million, GBP8 million of which will come from International Public Partnerships.
The consortium also comprises Aviva Investors, the investment management arm of FTSE 100-listed insurer Aviva PLC, with senior debt financing provided by the European Investment Bank.
In addition, HICL said it has invested GBP7.2 million in the North East batch project.
Along with the North East deal, Galliford said the Holywell contract will see it handle the construction of a single storey primary school under the Welsh Government's 21st Century Schools programme. That contract is worth GBP26 million.
"It is tremendous news for our business to have reached financial close on these two significant education contracts," said Greg Fitzgerald, Galliford's executive chairman.
"Our ability to conclude the contract with the EFA successfully demonstrates the strength of our Investments business in offering innovative solutions to unlock projects, while the Holywell contract is proof of our excellent construction offering in education and our growing prominence in the North Wales market," Fitzgerald added.
Galliford Try shares were up 0.5% to 1,493.00 pence on Wednesday, while International Public Partnerships shares were down 0.5% to 136.89 pence and HICL shares were trading flat at 154.87 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Galliford TryInternational Public PartnershipsHICL Infrastructure