AECOM's Tishman To Help Build One Manhattan West Building

AECOM (NYSE:ACM) revealed that its unit Tishman Construction has been selected to be the preconstruction and construction manager of Brookfield’s One Manhattan West, situated in New York City.

Per the contract, Tishman Construction will be responsible for managing construction of the 71-story, 2.1-million-gross-square-foot office building, with the total cost being about $2.1 billion.

The project had been recorded previously in AECOM's reported backlog.

The project will enable AECOM to contribute in building an iconic tower in the city’s Far West Side. Manhattan West is a transformative, mixed-use project that will offer both residential and office space to New York City.

The tower will anchor the Northeastern corner of Brookfield’s 7-million-square-foot Manhattan West development, which is being built near a 2-acre tree-lined park atop the rail lines that connect to Pennsylvania Station.

One Manhattan West is aiming for LEED-Gold certification, having been designed by Skidmore, Owings and Merrill. Also, law firm Skadden, Arps, Slate, Meagher & Flom LLP has signed a 20-year, 550,000-square-foot lease at the tower and is the anchor tenant for the same.

Tishman Construction will also offer construction management services for the repositioning of Five Manhattan West. In addition, the company will help in the fit-out of numerous floors for the new tenants of the building.

AECOM’s diversified portfolio comprises both designing and construction services. The company is determined to fortify its core business by developing an integrated service platform and gaining global expertise as a leading infrastructure provider.

Overall, AECOM won $4.4 billion of contracts in first-quarter fiscal 2016. Since contracted backlog is a key indicator of future revenue growth, it indicates a bright future for AECOM.

However, AECOM is facing headwinds in some of its end markets that can have an adverse impact on its near-term financial performance. The current volatility in the oil and gas markets, coupled with declining oil prices and capital spending levels, might continue to hurt the company’s projects and orders.

AECOM currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader industrial products sector include Alamo Group, Inc. (NYSE:ALG) , SuperCom Ltd. (NASDAQ:SPCB) and Alarm.Com Holdings, Inc. (NASDAQ:ALRM) , each carrying a Zacks Rank #2 (Buy).