JLIF said that, since its IPO in 2010, it had proven itself as a leading London-listed infrastructure fund investing in low risk, operational infrastructure assets and would be "an ideal owner of the portfolio".
Balfour Beatty did not dismiss the idea of selling its PPP portfolio, saying that it would review the proposal once received and that it 鈥渞emains open to value creation opportunities across the group while it concentrates on the restoration of value to its shareholders鈥�.
Balfour Beatty has been selling assets recently to strengthen its balance sheet, including its US engineering subsidiary Parsons Brinkerhoff to WSP for 拢820m and its 50% interest in the Pinderfields & Pontefract Hospital PPP project in West Yorkshire for 拢61.5m.
Balfour Beatty鈥檚 PPP portfolio includes 13 long term road management projects, four hospitals and eight schools in the UK. It also has substantial investment in the USA, including military and student accommodation concessions.
Balfour Beatty鈥檚 current market value for the whole group stands at 拢1.26bn.
In August it revalued its PPP portfolio, increasing the book value by 46% to 拢1,051m. This makes the residual construction business of Balfour Beatty worth just 拢200m.
Earlier this year, Balfour Beatty rejected a takeover bid from Carillion that valued the business as 拢2.1bn.
However, Balfour Beatty is not well placed to consider such offers at the moment as it is without effective leadership. Incoming chief executive Leo Quinn does not start until January, while stand-in executive chairman Steve Marshall and finance director Duncan Magrath are both serving out their notice. Last month also saw two non-executive directors quit.
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