In The Spotlight
The Van Leeuwen Pipe and Tube Group has acquired the business of Ferrostaal Piping Supply, a German-Dutch pipe and tube trading company that primarily supplies the chemical, petrochemical and machine building segments. The acquisition takes effect on May 1, 2018.
Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced that the firm has completed the sale of two single-tenant corporate MedExpress urgent healthcare centers in an off-market transaction.
Atlantia signed a binding term sheet (the “Term Sheet”), subject to the fulfilment of certain conditions, relating to a joint investment in Abertis Infraestructuras SA ("Abertis"). The transaction would be structured along the following essential lines (the "Transaction"): Hochtief’s Public Tender Offer: in relation to the competing voluntary public tender• offer for Abertis’s shares launched by Hochtief, approved by Spain’s market regulator, the Comisión Nacional del Mercado de Valores (the "CNMV") on 12 March 2018, Hochtief would amend the terms of its offer by eliminating the share component of its counterbid (and the resulting condition regarding the minimum acceptance threshold for this form of counterbid), so that the value of the counterbid would remain unchanged at €18.36 per Abertis share (as adjusted for the payment of any dividends), with this amount to be paid entirely in cash.
Hochtief would exercise its squeeze-out right should it achieve the legally required threshold or, alternatively, it would delist Abertis. Holding Company: the Parties would establish a new special purpose vehicle with capital• of approximately €7bn (the "Holding Company"), which would acquire Hochtief’s entire investment in Abertis, acquired by Hochtief as a result of its public tender offer, for a consideration identical to the amount paid under the terms of the public tender offer and of any squeeze-out or delisting (as adjusted for the payment of any dividends). 2 The Holding Company would enter into a new financing agreement in order to part finance the above acquisition.
The Holding Company’s capital would be held by the parties as follows: Atlantia 50% + 1 one share, ACS 30% and Hochtief 20% less one share, thereby enabling Atlantia to consolidate the Holding Company and Abertis in its accounts. The parties would enter into a shareholder agreement governing their relations as shareholders of the Holding Company, including qualified majority voting, as is usual in this type of transaction. Share issue by Hochtief and Atlantia’s investment in Hochtief: Hochtief would issue• approximately 6.43 million new shares to be subscribed for entirely by ACS at a price of €146.42 per share. ACS would then sell Atlantia shares in Hochtief with a value of up to €2,500 million at the same price paid for the newly issued shares. Strategic partnership agreement: in this context, Atlantia, ACS and Hochtief intend to• enter into a long-term agreement with the aim of maximising their strategic relationship and the synergies between themselves and Abertis in the form of new public-private partnerships, including both greenfield and brownfield projects. Atlantia’s Public Tender Offer: under the above agreements, Atlantia would withdraw its public tender offer for Abertis’s shares, approved by the CNMV on 9 October 2017.
The Term Sheet is subject to prior examination and approval by Atlantia’s Board of Directors, to arrangement of the financing necessary to conclude the Transaction and to agreement between the parties on the final terms of the contracts governing the Transaction, to be finalised in the coming days, based on the essential terms already agreed in the Term Sheet, and which will be duly announced to the market. Execution of the Term Sheet, in the above essential terms, is also subject to the supervision of the CNMV and, at this time, does not affect the status of the existing competing offers.
Bechtel, a global engineering, procurement and construction leader, and National Hispanic Entrepreneurs’ Organization (NHEO) Institute, a U.S. non-profit focused on the construction and engineering industry, announced partnership to advance innovative safety practices and engagement of craft professionals on construction sites through Building a Safer Future Campaign.
The campaign aims to impact more than one million people to reduce and ultimately eliminate construction-related hazards. The campaign will particularly recognize and support the craft professionals of Hispanic heritage as they innovate to build a safer construction culture.
“Bechtel’s partnership with NHEO Institute and its vibrant community, combining our experiences and expertise, will create solutions to our industry’s critical safety challenges,” said Christopher Forbes, innovation lead at Bechtel’s Environmental, Safety and Health. “We are looking forward to innovating with our partners and our craft colleagues to make construction sites a safer workplace.”
“Workforce training and engagement is a critical pillar in our vision to build a safer future. Through our partnership with industry leaders like Bechtel, construction workers will get access to leading expertise and support as they create a safer culture for their crews,” said JP Giometti, NHEO Institute Board member.
Building a Safer Future is NHEO Institute’s campaign to raise awareness and understanding of the value of safety and health programs throughout the U.S. It includes management leadership, craft professional participation, and a systematic approach to finding and fixing hazards in the workplace. Partnership with Bechtel will include hands-on work with crews on the company’s construction sites in the U.S. with large teams of Hispanic heritage to engage them in finding solutions to make measurable progress in select safety focus areas. Teams will be recognized for the innovative safety practices they implement. Solutions with proven results will be shared and adopted on Bechtel projects around the world.
AgroParisTech and VINCI Construction announce the creation of Urbalia, a start-up dedicated to integrating biodiversity and urban agriculture into urban development projects.
Galliford Try, the housebuilding, construction and regeneration group, announces that its Building business has been appointed to a new £40 million contract to build the new Centre for Teaching and Learning at Durham University
ConstructConnect, a leading provider of construction information and technology solutions in North America, announced today the release of its Q4 2017 Forecast Quarterly Report. The Winter 2017-18 starts forecast includes year-over-year estimates for 2017 that have become more upbeat than a quarter ago. Groundbreakings on several mega projects late this year have provided exceptional lift to the industrial and engineering type-of-structure categories.
“Out to 2021, residential will be the main driver of total construction starts, recording year-over-year increases of nearly +6.0% or more,” explained Chief Economist Alex Carrick. “Non-residential building will disappoint, with gains of only about +2.0% each year. Engineering will be strong in 2018 and 2019, as energy initiatives and infrastructure work are promoted by Washington, but will then moderate in 2020-21.”
The forecast which combines ConstructConnect’s proprietary data with macroeconomic factors and Oxford Economics econometric expertise, shows some of the more robust 2018 starts forecasts:
- Single-family residential, +8.8%
- Warehouses, +4.7%
- Nursing homes, +5.9%
- Educational facilities, +4.2%
- Roads, +5.9%
- Bridges, +10.2%
- Miscellaneous civil (power, oil and gas), +13.8%
2017 total starts are now expected to be +7.9% (versus an earlier calculated +4.5%). Residential has been upgraded to +10.1% and engineering/civil to +23.1%. Non-residential building has been left essentially flat at -0.5%.
For 2018, the new forecasts shave a bit off what was previously expected. Total starts are now projected to be +4.8%, a little slower than the +5.9% of a quarter ago. Residential will be +6.7% in 2018; non-res building, +1.9%; and heavy engineering/civil, +6.6%.
In residential construction, the multi-family market has had its turn and it will be the single-family market that will expand more rapidly moving forward, aided by family-formations among the millennial generation.
The forecast reports that educational facilities will grow faster than hospitals in 2018, but beginning in 2019 their positions will reverse. Some other non-residential building type-of-structure categories with bullish outlooks include: courthouses and prisons; warehouses; and nursing homes. Airports and sports stadiums will also be stepping into the construction spotlight.
The report noted a few ongoing economic trends:
- A synchronous world expansion is underway, with North America, Japan, China and Europe all experiencing GDP growth
- Based on demographics, housing starts have fallen short of potential for almost a decade
- Office space demand will increasingly come from firms engaged in high-tech
- Prices for many internationally traded commodities are on the mend
To learn more about ConstructConnect or get a free copy of the Forecast Quarterly Report, visit constructconnect.com
ConstructConnect is a leading provider of construction information and technology solutions in North America. Through the combination of its four legacy brands (iSqFt, Construction Market Data, BidClerk and Construction Data), ConstructConnect brings project participants together with the most complete, accurate and actionable construction data and tools to drive success in national, regional and local markets. Its collaborative network empowers the construction industry to be more successful with access to relevant information through easy to use technology. For more information, visit constructconnect.com
Gilbane Building Company has been selected by the city of Reynoldsburg to provide construction management at-risk services for the new Reynoldsburg Community Center YMCA.