Builder in £193m deal for Miami riverside complex
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”.