ACCIONA has entered into an agreement with Lendlease, the Australian property and infrastructure group, to acquire the ongoing business of Lendlease Engineering. The agreement comprises eight key projects:

• Southern Program Alliance (Victoria). A level crossing removal project. In JV with ACCIONA.
• Southern Program Alliance AWP1 (Victoria). Additional work. In JV with ACCIONA.
• Ballarat Line Upgrade (Victoria). Railway upgrade. In JV with ACCIONA.
• WestConnex 3A (NSW). Two 7.5 km-long twin motorway tunnels.
• Western Sydney International Airport (NSW). Major bulk earthworks package.
• Pacific Highway W2B (NSW). Road section upgrade.
• Gawler Rail (South Australia). Electrification Project.
• The Northern Road Upgrade (NSW). Road section upgrade.

Under the terms of the agreement, the NorthConnex and Kingsford Smith Drive projects, both in their final stages, and Melbourne Metro will not be included in the perimeter and will remain with Lendlease.

The transaction, valued at AUD 180 million (US$ 124.15 million), includes a substantial fleet of plant and equipment as well as the project-related workforce and Lendlease Engineering's business development teams. The deferred consideration is one-third payable upon completion, a further third at the end of 2020, and the rest in June 2021.

The agreement is expected to become effective in the first half of 2020 subject to regulatory approvals and client and third party consents.