Skanska to divest ownership stake in ERC in Virginia for $625M

Skanska has signed a binding sale and purchase agreement, or SPA, for its 50% ownership stake in Elizabeth River Crossings, or ERC, in Hampton Roads Metropolitan Area, Virginia, for gross sale proceeds of $625M. The buyer is Abertis, and Manulife Investment Management, on behalf of John Hancock Life Insurance. The transaction will be recorded at closing under Central stream, which is expected to be in Q4. ERC was established by Skanska and Macquarie Infrastructure Partners II, a fund managed by Macquarie Infrastructure & Real Assets in 2012 as part of a public-private partnership with the Virginia Department of Transportation, to rehabilitate the existing Downtown and Midtown Tunnels, construct a new, parallel Midtown Tunnel, extend the Martin Luther King Freeway to I-264, and assume all tolling, operations and maintenance of these facilities through 2070. The construction of the new Midtown Tunnel was completed by a Skanska-led construction joint venture in 2016, almost a year ahead of schedule. Completion of the sale is subject to regulatory approvals and other consents. The final purchase price may be adjusted as a result of certain conditions. Skanska will announce the final amount and closing of the divestment in connection with the completion of regulatory approvals and other consents and the satisfaction of SPA conditions. It is anticipated that completion of the divestment will take place by the end of 2020, with MIP II's divesting its 50% managed equity stake in ERC also at such time.