The group has sold its 50% interests in four PFI schools projects in Birmingham, Bassetlaw, Stoke and Rotherham to its co-shareholder, Innisfree, for combined proceeds of 拢42.5m, generating a gain on disposal of 拢24.4m.
It has also completed the sale of its 50% interest in the Tameside Hospital PFI to a subsidiary of HICL Infrastructure, its co-shareholder, for 拢16m, generating a gain of 拢9m.
The aggregate proceeds of 拢58.5m exceed the directors鈥� valuation by 拢21.9 million. "Balfour Beatty's ability to deliver long-term projects has enabled us to deliver superior returns from our equity investments while delivering a first class service to the public sector,鈥� said Balfour Beatty chief executive Andrew McNaughton. 鈥淭he transactions we have completed demonstrate the quality and liquidity of our portfolio and are in line with our strategy to generate income from our infrastructure investments business through disposals, thereby releasing cash for future investments and delivering value for our shareholders.鈥�
The company said that its PFI asset sales demonstrate value of its investment business. Since the mid-1990s the group has built a substantial investments business through financing and developing greenfield infrastructure assets. This business has been diversifying its activities into new sectors and new geographies, thus reducing the business鈥檚 reliance on PFI in the UK and military housing in the US.
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