CIMIC Group’s Leighton Asia is in for a windfall of more than $70 million after furniture giant IKEA awarded it the construction rights for its first store in India.
The contract means nearly $350 million in revenue has been confirmed for Leighton Asia in just a matter of days, after it was selected for major works at Hong Kong International Airport last week.
The IKEA outlet in Hyderabad will comprise five floors including two basement levels and feature a market hall, warehouse, showroom, restaurant and home delivery area, with a total built-up area of around 40,000sqm on a 5.2-hectare site.
The contract includes the delivery of civil and structural works and completion is planned for early next year.
Leighton Asia is anticipating revenue of $70.4 million from the IKEA development.
“We are pleased to be the key player in delivering IKEA’s flagship store in India and to contribute our international experience and local expertise to ensure an efficient and effective construction program,” Cimic group chief executive officer Adolfo Valderas said.
“Not only is this a major milestone for IKEA but it is also one of significant for Cimic Group and Leighton Asia in terms of securing this important contract with one of the world’s biggest home furnishing brands,”
Cimic’s announcement quickly followed last week’s revelation that Leighton Asia had been selected by Airport Authority Hong Kong to deliver the Terminal 1 Annex Building and Carpark 4 Expansion Project at Honk Kong International Airport, expected to bring $278 million in revenue.
That project will see the expansion of Terminal 1, including the construction of a seven-storey structure, and an 11-storey building as part of the Carpark 4 works. Completion is expected in 2019.
Australian Property Journal
