Construction and property firm Kier Group Plc (LSE: KIE), in partnership with DIF Infrastructure II, today received the go-ahead for Blue 3.
No, this is not something from outer space.
As part of the Blue 3 project, the two firms will design, build and maintain nine new community fire stations in south-east and east London on behalf of the London Fire Brigade.
The government is providing £52m funding under the Private Finance Initiative and Blue 3’s contract will run for 28 years.
The fire stations will be built and maintained by Kier and handed over between autumn 2014 and February 2016.
Kier Group chief executive Paul Sheffield commented:
“We look forward to working in partnership with London Fire Brigade in delivering strategic assets that are sustainable and promote inward investment in the region. This is an excellent opportunity for us to demonstrate how effective public/private partnerships can deliver high quality, value for money solutions.”
Securing the Blue 3 contract is good news for Kier Group shareholders, as a key part of the company’s success hinges on its ability to secure big contracts.
In July, Kier Group announced that it had secured in excess of £1.4 billion in new contracts as it works to develop its housing and development pipeline. Kier Group said it expects this fiscal year’s turnover to be approximately £2.1 billion, with 92% of its forecast Services revenue for the 2014 financial year either “secured” — as is now the case with Blue 3 — or “probable.”
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> Jill does not own shares of any company mentioned.