Balfour Beatty announces disposal of hospital PPP asset

Company announces disposal of 50% interest in University Hospital of North Durham PPP project

Balfour Beatty has announced the disposal of its 50% interest in the University Hospital of North Durham PPP project.

The move follows the disposal of the company’s 100% interest in the Knowsley Building Schools for the Future (BSF) project. Together the deals generate total gains on disposal of £51m.

These transactions are in line with Balfour Beatty’s strategy to recycle equity invested in its portfolio, and further demonstrate the quality of the investment portfolio and its ability to generate value for shareholders. The proceeds will be used to invest in new and existing projects in areas that align with the group's target geographies and market sectors.

The sale of Durham for £55m remains subject to the right of the co-shareholder to exercise its rights of pre-emption at the proposed sale price, with completion expected to occur by mid-July.

Both this and the Knowsley scheme, which generated £42m, are being acquired by funds managed by Dalmore Capital, with consideration to be paid in cash in full on completion of each transaction.

Balfour Beatty executive chairman, Steve Marshall, said: "These disposals 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.

“The transactions demonstrate the quality and liquidity of our portfolio and show again a substantial premium to the directors’ valuation.”

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