The project cost is estimated at £38 million (US$62 million). The construction contract will involve the provision of seven schemes of supported housing across the county. Approximately 240 homes are anticipated to be built by Galliford Try's Partnerships business.
The current value of the index linked investment to be made by Galliford Try over the 25-year course of the contract is in excess of £4 million (US$6.5 million).
Galliford Try's Facilities Management business will provide ongoing hard and soft facilities maintenance and lifecycle management services in operating the scheme accommodation. The Facilities Management contract is anticipated to be worth over £36 million (US$60 million), providing approximately £1.5 million (US$2.5 million) of additional index linked income per annum to the Group.
Greg Fitzgerald, Galliford Try Chief Executive, said:
We are delighted to have been selected for this significant contract by Kent County Council. We continue to demonstrate our expertise in providing high quality facilities for vulnerable people. The multi-faceted nature of this contract provides further evidence that our diverse business allows us to offer clients integrated solutions to solve their problems.
Today, we also published that the company has reached financial close for the redevelopment of James Gillespie's High School in Edinburgh. Earlier in the year, in July, Galliford Try plc announced that its Scottish business Morrison Construction had been appointed preferred bidder contractor by hub South East Scotland on behalf of NHS Lothian for the first phase of the £41.8 million redevelopment of the Royal Edinburgh Hospital.
A SPV where Galliford Try Investments Ltd is a minority investor (with 7.5%) is planning to issue £73.5 (US$101 million) million of senior secured fixed-rate bonds to finance Brunswick public housing PFI project in central Manchester.