Is the Atlas Arteria Group (ASX: ALX) share price a buy after announcing approval for works on the Dulles Greenway in the US.
Atlas Arteria is a global operator and developer of toll roads. The selling point of toll roads is that they can reduce travel time, make travel time more certain, reduce fuel consumption and carbon emissions. It owns 25% of APRR in France and the smaller ADELAC business which connects to APRR, together comprising 2,318km motorway in east and south east of France. In the US it owns 100% of the Dulles Greenway, a 22km toll road in Virginia. In Germany it owns 100% of the Warnow Tunnel in the north east city of Rostock.
Atlas’ Approval For Works
It has received approval for both the East End and West Wend projects to help congestion points on the Dulles Greenway.
More specifically, a signed work permit from the Metropolitan Washington Airports Authority has been given for Phase 2 of the Dulles Toll Road Connector Project – this is the East End. It’s expected to cost US$18 million, but can be funded out of cashflows and is expected to be completed in 2020.
A project agreement has also been executed with Loudoun County and the Town of Leesburg for the design and construction of improvements to the Virginia Route 7 / US Route 15 Bypass at the Greenway’s western terminus in the Town of Leesburg – this is the West End. It’s expected to cost US$6 million in total, with the Greenway covering US$3 million of the cost. It’s expected to take two to two and a half years.
Atlas Arteria Graeme Bevans said: “These approvals are important positive steps in building relationships with key community stakeholders and providing a better travel experience for our customers.
“We are eager to commence and complete the works, which we expect will further alleviate morning and afternoon peak congestion and improve the traffic flows on Dulles Greenway.”
Is The Atlas Arteria Share Price A Buy?
Investors might be attracted to the good level of cashflow that Atlas Arteria produces each year, although its current dividend yield is only 3.9%. Transurban Group (ASX: TCL) is another consideration, but there could be better options at better prices such as the reliable ones in the free report below.
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