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01/04/2015

Select Property Group Awards Contracts To Carillion

The Select Property Group has awarded contracts, worth a total of £123m, and preferred bidder contracts to Carillion.

The firm has been appointed to deliver residential schemes at three site across the UK, and by Highways England.

These include a £17m contract in Newcastle city centre to construct a 260-bed student residence under Select Property Group's Vita Student brand. The development involves the demolition of an existing office block and construction of the residential area on six storeys above commercial units. Work has now started and is scheduled for completion in May 2016.

Select Property Group has also selected Carillion as the preferred bidder for a Vita Student scheme in Partick, Glasgow. The £32m scheme involves site remediation, construction of a 501-unit residence, a communal hub, significant retail units and associated car park works. The project will be delivered in two phases, with Phase 1 comprising 250 rooms, a communal hub, a retail facility and car parking and is due to complete in September 2016. Phase 2, will include the remaining 251 studios and is due for completion in February 2017.

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Carillion has also been selected as the preferred bidder to deliver 260 luxury managed apartments in central Manchester under Select Property Group's newly-launched CitySuites brand. This development includes a mixture of studios, one- and two-bedroom apartments, and hotel-style leisure facilities, including an 18-metre swimming pool and fitness suite. The contract, which is worth £34m, is due for completion in January 2017.

Highways England has appointed a joint venture in which Carillion has a 50% interest to build the £85m A5-M1 Link Road Dunstable Northern Bypass to improve the east-west connection between the A5 and M1. This new 2.8 mile two-lane dual carriageway, with three new junctions, will improve journey times for long-distance traffic that will be able to use the A5-M1 link as an alternative to the current route through the town centre.

On 25 February 2015, Al Futtaim Carillion (AFC) was announced as the preferred bidder for two projects for Meraas, a Dubai-based holding company. In respect of one of these projects, a £225m mixed-use development on the Dubai Creek waterfront, AFC has since agreed with Meraas that given this development has become highly dependent on an associated major marine works contract, AFC will not proceed with the waterfront development, which will now be delivered by the marine works contractor.

(CD/JP)

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