John Laing makes further investment in Australia

John Laing Group said on Monday that its Cross Yarra Partnership has reached agreement with Melbourne Metro Rail Authority for the financial close of the Tunnel and Stations Package as part of the Metro Tunnel Project.

Laing is joining Cross Yarra as an investor in the Tunnel and Stations Package along with the other consortium members, Lendlease, John Holland, Bouygues Construction and Capella Capital.

The partnership was announced as the preferred tenderer for the AUD6bn Tunnel and Stations Package in July. The project company will deliver twin nine-kilometre tunnels and five new underground stations at North Melbourne, Parkville, State Library, Town Hall and Anzac, as part of the state of Victoria's biggest ever public transport project.

The company said that as stated in its pre-close update earlier this month, its investment commitments for the year to date were £340m, well ahead of the original guidance of around £200m. Taking into account the Metro Tunnel investment, commitments rise to £383m.

Chief executive officer Olivier Brousse said: "Melbourne's Metro Tunnel is a landmark project that will transform the Melbourne rail network. The Public Private Partnership set up with the State of Victoria will guarantee the delivery of this highly complex project. John Laing is delighted to be involved in such an important project alongside some of the best construction and development companies in the world that are Lendlease/Capella, John Holland and Bouygues Construction."

At 0900 GMT, the shares were up 0.2% to 280.40p.