The Cimic Group Ltd (ASX: CIM) share price is edging higher in late morning trade. This comes after the company announced its specialist building company had won a contract award.
At the time of writing, the global engineering company's shares are trading at $18.14, up 0.89%.
Why is the Cimic share price lifting?
According to its release, Cimic's Broad Construction has been selected to deliver Brisbane's Ferny Grove Central development. Honeycombes Property Group and joint-venture partner MaxCap Group awarded the contract.
Broad Construction is a wholly-owned subsidiary of CPB Contractors, which is part of the Cimic Group.
Broad Construction will redevelop the existing Ferny Grove train station commuter car park into a residential, commercial and retail hub under the agreement. The company will also provide additional parking spaces for commuter vehicles, partly funded by the Queensland and Australian government.
The project complements Broad Construction's portfolio of works completed in Queensland. The company was responsible for the development of the Inner-City South State Secondary College and the Kingaroy Hospital.
Cimic expects the new Ferny Grove Central contract to generate roughly $100 million in revenue for CPB Contractors.
Construction is scheduled to start in June 2021 and be completed by August 2023.
Management commentary
Cimic group executive chair and CEO Juan Santamaria commented:
Backed by CPB Contractors, Broad Construction is our specialist building company and is delivering a range of high-quality projects, across Queensland and Western Australia. We are very pleased to be working with the Honeycombes Property Group and the MaxCap Group on this landmark urban redevelopment.
CPB Contractors managing director Jason Spears added:
The experience of our team means that we have the capability to provide safe and certain delivery to our clients. Broad's inclusive procurement strategies will also provide opportunities for local workers and businesses.
The Cimic share price has lost roughly 20% over the past 12 months and is down around 27% year-to-date.
