Balfour Beatty has announced the disposal of its 50 per cent interest in the University Hospital of Durham PPP project and its 100 per cent interest in the Knowsley Building Schools for the Future (BSF) project for a total consideration of £97 million, generating total gains on disposal of £51 million. This represents an uplift of 82 percent as the proceeds from these transactions exceed the Directors’ valuation by £44 million and 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 Knowsley for £42 million is unconditional and is expected to complete shortly. The sale of Durham for £55 million 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 assets are being acquired by funds managed by Dalmore Capital Limited, with consideration to be paid in cash in full on completion of each transaction.
Commenting today (2 June), 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.”