Carillion JV Secures £1.1bn Facilities Management Defence Contract

Carillion’s joint venture with US engineering giant KBR has secured a £1.1 billion construction and facilities management contract to re-base troops coming back from Germany by 2019.

The Aspire Defence Capital Works joint venture will design and build 130 buildings, along with extensions and alterations to the current buildings and associated infrastructure.

The construction works throughout Aldershot and the Salisbury Plain Training Area are set to begin straight away. They are worth £680 million, which will be shared equally between the partners.

The facilities management and maintenance of the new camps and garrisons will be provided by a separate joint venture between both companies, known as Aspire Defence Services. The Project Allenby/Connaught PFI contract was let to Aspire in 2006.

Together this will generate £430 million of support services revenue over the remaining 25 year contract. The additional service provision will begin as soon as construction of the first asset is completed, which is expected to be in May 2017, and will run until 2041.

‘We are delighted’

Carillion chief executive Richard Howson said: “We are delighted that Aspire Defence Limited and its sub-contractors Aspire Defence Capital Works and Aspire Defence Services have been selected by the Ministry of Defence to deliver this major element of the Army Basing Programme.

“I believe this reflects in the successful delivery of new living and working accommodation along with associated assets for Project Allenby/Connaught, together with the high-quality, value for money services that will continue to be provided for this project.”

Last month, Carillion secured a £350 million contract to continue its support of Nationwide Building Society.

With the new deal, the buildings and maintenance firm will maintain its management facilities at Nationwide’s Swindon headquarters, its 15 corporate offices, its data centres and its 700 high street outlets throughout the UK.

It is a seven-year contract with the potential to be increased to ten, and renews the existing nine-year partnership between the two companies. Shares in Carillion jumped 1.53pc early on Tuesday morning to 255p.