Kier Group defies gloom with north London high-rise contract win worth £37m

For all its financial troubles, Kier Group continues to win construction contracts in the capital, having been tasked with building a large residential development in north London.

Kier has this morning been tasked with building a £37.2m 22-floor high-rise in Haringey which will contain 128 residential flats, by housing association Newlon Housing Trust.

Read more: Timeline: Where did it all go wrong for Kier?

The project is the fifth Kier has undertaken for the group in recent years, and is due for completion in 2021.

The construction outsourcer has faced a difficult few months, after seeing its share price plummet more than 39 per cent since November.

It still faces an estimated £300m of debt, despite paying off roughly that amount from its original debt pile by selling off parts of the business and issuing shares to existing investors at a discount price.

And to compound the problem, the firm’s former chief executive, Haydn Mursell, was ousted last month by a powerful group of shareholders spearheaded by veteran investor Neil Woodford.

Read more: Kier shares fall again amid reports of sell-off to cut debt pile

Cliff Thomas, managing director for Kier London, said: “We have a strong relationship with Newlon Housing Trust and are thrilled to be working on its new residential development for the residents of North London.

“We have extensive experience in delivering residential properties for the capital and we look forward to working collaboratively with the client and our local supply chain on the project.”