Esorfranki on Thursday advised that it is in negotiations to acquire the business of a development company with rights as the "turnkey developer/contractor" for an integrated mixed-use, affordable housing development on approximately 237ha of land

Construction group Murray & Roberts said in a business update on Wednesday that it expects diluted headline earnings per share and earnings per share to show a loss for the financial year ending June 2011

Construction group Murray & Roberts said it expected continuing diluted headline earnings per share to remain within 5%.

Credit Suisse Standard Securities has explored the notion of a potential future alliance between China based construction players and Murray & Roberts.

Esorfranki has pointed to an approved capital expenditure of R72m for the 2011 financial year to accommodate future growth 'and to maintain its competitive edge.

The boom times may have gone but there is still value in the construction sector, with infrastructure spending underpinning order books.

Murray and Roberts has reported headline earnings per share of 200c for the 6 months ended December 31, 2009, from 302c previously.

Construction group Aveng said its two-year order book had increased to R31,3bn at the end of last month compared with R30,4bn in June.

Murray & Roberts's strong performance in the prevailing difficult economic conditions is in line with that of other companies in the sector.

South African-based construction firm Murray & Roberts says that the Salam Resort joint venture project in Bahrain has been cancelled.