Kier announces potential new partnership arrangements

Property construction firm Kier Group has announced two new projected partnership arrangements with local authorities.

Kier has been recommended as the preferred bidder for a 10-year property partnership with Staffordshire county council and Staffordshire’s police and crime commissioner, valued at £400m. If accepted, the venture will commence in April 2015 with a potential five-year extension.

The contract will involve Kier in the development, disposal, acquisition, construction, asset management and facilities management of the estates owned by the involved organisations.

In addition, Kier has been awarded a £200m four-year extension of an existing highways services contract with Northamptonshire County Council.

Chief executive of Kier Haydn Mursell said: "These new contract awards demonstrate the breadth of offering the group can provide through long-term strategic partnerships.

“We look forward to working with our partners to deliver more integrated and effective services, whilst also helping them to drive additional cost savings."

As of 12:03 on Thursday, Kier’s share price rose 4.01% to 1,480p per share.