10:29 AM EDT, 03/27/2024 (MT Newswires) -- Aecon Group Inc. ( AEGXF ) , which rose 2.5% and nearer to 52-week high levels, overnight Tuesday said the US Virgin Islands Port Authority has selected VIports Partners, an Aecon ( AEGXF )-led consortium, to redevelop the Cyril E. King Airport in St. Thomas and the Henry E. Rohlsen Airport in St. Croix.

The consortium will redevelop the airports under a collaborative Design, Build, Finance, Operate, and Maintain Public-Private Partnership model.

VIports is comprised of Aecon ( AEGXF ), Tikehau Star Infra, Consigli Benton Joint Venture and Avports.

Aecon Concessions will hold a 50% equity interest in the 40-year concession with Tikehau Star Infra also holding 50% of the equity. Aecon ( AEGXF ), as Design-Build lead, will also have a 50% interest in the Design-Build joint venture together with local partner J. Benton Construction.

Also, Avports will serve as the operations and maintenance partner.

Under a transition phase agreement, VIports and US Virgin Islands Port Authority will negotiate and finalize various elements of the project over nine months.

Upon completion of the transition phase, financial close is expected in the first quarter of 2025, the company said.

Meanwhile, National Bank on Wednesday reviewed Aecon Group's ( AEGXF ) announcement of the selection of Aecon ( AEGXF ) consortium by the US Virgin Islands Port Authority to redevelop the Cyril E. King and Henry E. Rohlsen airport.

"We would expect the overall return profile of the project to be similar to ARE's Bermuda ops if similar assumptions hold true, though it is worth noting that combined traffic levels for the two airports are likely +50% to +100% higher than for Bermuda's L.F. Wade International Airport," the analysts said.

National Bank has a sector perform rating with a price target of C$15.

The company's shares edged up 0.8% on last look on Wednesday.

Price: 16.81, Change: +0.14, Percent Change: +0.84