SRG Global wins $25m design contract for new Victorian Heart Hospital

Engineering and construction specialists SRG Global (ASX: SRG) will have a major role in the appearance of the new Victorian Heart Hospital having secured a $25 million contract to design and build the curtain wall facade. 

The new Government-backed hospital is a $564 million development which will be Australia’s first dedicated cardiac facility, aiming to address rising numbers in cardiac disease. 

“We are very pleased to have secured this important Government backed health infrastructure contract,” said SRG Global Managing Director, David Macgeorge. 

“We look forward to contributing to this world class cardiac facility and are pleased to be partnering with John Holland on this development.” 

Work on the curtain facade is expected to commence in January 2021 and be completed within 9 months. Once complete, the Victorian Heart Hospital will have the advanced facilities to perform 2,150 cardiac surgeries and 13,000 cardiac lab procedures annually. 

Located on the Monash University Clayton campus, the state-of-the-art specialist hospital will integrate clinical cardiology services, research and education to create a centre of excellence, raising the profile of cardiovascular research, treatment and training.

Securing the hospital contract continues the handy run of form for SRG Global which last week secured an 8-year contract for the maintenance of Auckland Harbour Bridge expected to deliver NZD $25 million. The Auckland contract continued a lengthy association with the New Zealand Transport Agency where SRG Global has been providing maintenance services over the past 22 years. 

Despite the economic downturn caused by COVID-19, SRG has mitigated the short-term impact to their earnings where the company expects to report FY20 EBITDA around $20 million. However, SRG has forewarned that the major shutdowns of work in Australia and New Zealand through the pandemic will be reflected in their FY21 earnings, expected to be around 50% of FY20. 

As per their market update on 2 July 2019, SRG Global had $707m worth of current work in hand and an opportunity pipeline of $6.2 billion.