Leighton and ConnectEast reach agreement
Leighton Holdings Limited (LEI) announced that joint venture Thiess John Holland (“TJH”) has reached conditional agreement with ConnectEast Group (CEU) on an amended calculation and payment terms in relation to the performance bonus relating to the early completion of EastLink in Melbourne. The company said the agreement includes a settlement of Supreme Court proceedings commenced by TJH on 7 September 2009 and resolves a number of other commercial issues.
As part of the agreement, TJH said the formula for the bonus calculation would be amended to better reflect revised traffic ramp-up projections.
Meanwhile, Thiess has signed a $123 million contract with Leighton Properties to build King George Central, at 145 Ann Street in Brisbane’s CBD.
Managing Director David Saxelby said the office tower would be the first such CBD development to commence in Australia since the start of the global financial crisis.
The company said the building would be designed according to the Heart Foundation’s Healthy by Design features.
Leighton expects construction to begin immediately, with the project set to finish early 2012.
As at 1504 AEDT, Leighton shares were up 92c to $35.69, while ConnectEast shares were up 1c to 41c.
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