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Balfour Beatty sells stake in two PFI concessions in return for £21M war chest

Balfour Beatty has agreed the sale of a 23.9% interest in its Edinburgh Royal Infirmary PPP concession and of its entire 50% interest in the Aberdeen Waste Water PPP concession to funds managed by Australian fund manager AMP Capital Investors for £24.3M.

The transactions will generate a profit of around £21M for the Group.

Completion of the sale of these interests is expected to occur in April 2010.

Balfour Beatty chief executive Ian Tyler said: “These transactions demonstrate the quality of our PPP assets and fully justify our commitment to developing and maintaining an active PPP investment portfolio. Balfour Beatty’s development capability, operating expertise and proven capability in financial structuring allow us to form long-term partnerships with the public sector and to realise superior returns from our equity investments. These transactions represent excellent value for Balfour Beatty shareholders.”

Balfour Beatty has a substantial infrastructure investments portfolio, largely through the UK PPP/PFI programme. This portfolio consists of:

  1. Nine major hospitals
  2. Ten major schools schemes in the UK and a technical education centre in Singapore
  3. Six roads schemes and three street lighting projects, in addition to Coventry at preferred bidder stage
  4. The London Underground power system
  5. A waste water scheme
  6. A coastal defence pathfinder PPP
  7. Barking Power Station (non-PPP)
  8. Exeter International Airport (non-PPP)
  9. Blackpool International Airport (non-PPP)

In the US, Balfour Beatty is responsible for the development, renovation, operation and management of military privatisation housing projects for the US Departments of the Army, Navy and Air Force. Balfour Beatty is a leader in the military housing industry and provides services to members of the US military and their families residing on or near bases located in 20 states and Washington, DC.

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