ERC was formed to rehabilitate the existing tunnels in the Downtown and Midtown region. Credit: Skanska.

Swedish construction and development firm Skanska has signed a sale and purchase agreement (SPA) to divest its 50% ownership stake in Elizabeth River Crossings (ERC) in Hampton Roads Metropolitan Area, Virginia, for $625m.

Skanska’s stake in ERC will be acquired by Abertis and Manulife Investment Management on behalf of John Hancock Life Insurance Company (USA).

ERC was established in 2012 by Skanska and Macquarie Infrastructure Partners II (MIP II), a fund managed by Macquarie Infrastructure & Real Assets.

ERC was formed to create a public-private partnership with the Virginia Department of Transportation (VDOT) to rehabilitate the existing tunnels in the Downtown and Midtown region.

In addition, ERC was also responsible for constructing a new parallel Midtown Tunnel and extending the Martin Luther King Freeway to I-264.

Under the public-private partnership terms, ERC was responsible for all tolling, operations and maintenance of these facilities until 2070.

ERC completed the construction of the Midtown Tunnel in 2016, which is said to be one year ahead of the actual schedule.

Divestiture of Skanska’s stake is subject to regulatory approvals and other consents.

Skanska said the final purchase price may be adjusted as a result of certain conditions.

In addition, MIP II’s will be divesting its 50% managed equity stake in ERC for $625m.

Completion of both the deals is expected by the end of the year.

The Swedish company said that all the details of the transaction will be released at a later stage.

This August, Skanska secured a Skr615m ($70m) contract from Florida Department of Transportation (FDOT).

Under the contract, Skanska agreed to design and build a new interchange at State Road 557 of Interstate 4 (I-4) in Polk City, Florida, the US.

The project included the construction of a new bridge that will be used to carry State Road 557 traffic over the newly widened I-4.