Builder in £193m deal for Mi­ami river­side com­plex

Yorkshire Post - Business - - BUSINESS -

CON­STRUC­TION FIRM Bal­four Beatty has clinched a $260m (£193m) con­tract to de­velop a shop­ping and res­i­den­tial com­plex in Mi­ami.

The 8.1-acre River Land­ing Shops and Res­i­dences project will fea­ture more than two mil­lion square feet of re­tail and hous­ing, in­clud­ing 475 rented apart­ments and a five-storey shop­ping cen­tre along the Mi­ami River.

Bal­four Beatty said it would start work­ing on the site later this year and em­ploy 750 work­ers at the height of the project.

Com­ple­tion is slated for the fourth quar­ter of 2019.

The FTSE 250 firm won the con­tract from long-stand­ing client Matthews South­west, which is work­ing with real es­tate in­vest­ment trust H&R Reit and Ur­banx Com­pany on the project.

Bal­four Beatty chief ex­ec­u­tive Leo Quinn said: “This trans­for­ma­tional de­vel­op­ment in the heart of Mi­ami builds on Bal­four Beatty’s his­tor­i­cal and grow­ing re­la­tion­ship with Matthews South­west as we ex­pand on our pres­ence in the South Florida mar­ket.”

En­thu­si­asm over the con­tract did not trans­late into mar­ket ex­cite­ment, how­ever, with shares fall­ing nearly one per cent or 2.5p to 266.6p in mid­day trad­ing.

But the com­pany has been cheered for its turn­around ef­forts and cost-cut­ting pro­gramme un­der Mr Quinn, hav­ing swung back to profit in the hal­fyear to June 30.

It said in Au­gust that pre-tax profit reached £12m com­pared with a £15m loss in the same pe­riod a year ear­lier.

The re­sults came as wel­come re­lief to the firm af­ter it was held back by oner­ous con­struc­tion con­tracts that de­liv­ered poor re­turns last year.

Group rev­enue in­creased over six per cent to £3.5bn, de­spite the firm’s or­der book fall­ing 4.2 per cent to £11.4bn, though Bal­four put it down to a “dis­ci­plined and se­lec­tive ap­proach to bid­ding”.

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