UK developer John Laing and Swedish developer Skanska have reached financial close on a £74 million (€84.4 million; $120.5 million) contract to design, build, finance, and operate street lighting in the south London boroughs of Croydon and Lewisham.
Skanska and John Laing are equal partners in the 25-year project, which is being implemented as a private finance initiative (PFI), the UK's standardised procurement process for public-private partnerships. The partners will invest £4.5 million each in the project, according to a joint statement.
The project involves the replacement or renovation of over 40,000 street lights over the next five years.
This marks the second street lighting PFI that Skanska and John Laing are undertaking jointly. In late 2009 the two developers reached financial close on the £84 million Surrey street lighting contract, according to the UK PFI database.
John Laing is also the largest shareholder in the John Laing Infrastructure Fund, which raised £270 million through an initial public offering on the London Stock Exchange late last year, and recently raised an additional £27 million. The fund has focused on acquiring operational PFI projects from John Laing, including several street lighting projects.