Skanska to Sell Stake in Public-Private Partnership for $625M

Established in 2012, the infrastructure partnership included a Macquarie Infrastructure and Real Asset-managed fund and the Virginia Department of Transportation.
Elizabeth River Crossings Tunnels. Image courtesy of Skanska

Skanska has entered into a sale and purchasing agreement for its 50 percent stake in Elizabeth River Crossings HoldCo LLC in Hampton Roads Metropolitan Area, Va. The buyer is Abertis and Manulife Investment Management, on behalf of John Hancock Life Insurance Co. The contract is valued at $625 million and is expected to close in the final quarter of 2020.

Established in 2012 by Skanska and Macquarie Infrastructure Partners II—a fund managed by Macquarie Infrastructure Partners & Real Assets—ERC is part of a public-private partnership with the Virginia Department of Transportation. The partnership’s goals were to rehabilitate the existing downtown and midtown tunnels, construct a new parallel midtown tunnel, extend the Martin Luther King freeway to Interstate 264, and assume all tolling, operations and maintenance of the facilities through 2070. A joint venture led by Skanska completed the construction of the new midtown tunnel in 2016, roughly a year ahead of schedule.  

In mid-June, Skanska unveiled the 850,000-square-foot Arrivals and Departure Hall at LaGuardia’s $5 billion Terminal B redevelopment project. Known as the Headhouse, the facility will serve as the new main entrance for passengers utilizing Terminal B.