Balfour Beatty, the international infrastructure group, announces the sale of its 50% interest in the Royal Infirmary of Edinburgh project for a consideration of £72 million. The proceeds from the transaction are consistent with the most recent Directors’ valuation.
The investment is being acquired by funds managed by Equitix, a market leading investor and fund manager of core infrastructure assets. The sale of the investment remains subject to the right of the co-shareholder to exercise its rights of pre-emption at the proposed sale price.
The consideration is to be paid in cash in full on completion of the transaction, expected to occur by mid-June, and will be retained within the business.
Leo Quinn, Balfour Beatty Group Chief Executive, said: “This transaction again underlines the quality of the investments portfolio and its ability to generate value for shareholders. It also demonstrates our commitment to maintaining a strong balance sheet through self-help as we deliver the first phase of the Build to Last transformation programme.”
Analyst/investor enquiries:
Peter Young
+44 (0)20 7216 6824
Peter.H.Young@balfourbeatty.com
Media enquiries:
Louise McCulloch
+44 (0)20 7216 6846
Louise.McCulloch@balfourbeatty.com
Notes to editors:
1. Description of the project that is the subject of the disposals:
The c.£208 million contract for the design, build, finance and operation of the 872 bed hospital and university medical school was entered into between Consort Healthcare (Edinburgh Royal Infirmary) Limited and the Royal Infirmary of Edinburgh NHS Trust, now NHS Lothian Health Board on 21 August 1998. The project is for a c.30 year period, comprising a four and half year design and construction stage followed by a 25 year operational stage. The project was completed on time and within budget and became operational in 2003. It is currently in year 12 of operations.
2. Summary financial information relating to the project as included in the Group’s accounts for the year ended 31 December 2014:
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Royal Infirmary of Edinburgh |
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Investment in Joint Venture & Associates |
£27.9 million |
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Profit Before Tax |
£15.5 million |
3. Balfour Beatty is a leading international infrastructure group. With 36,000 employees, we provide innovative and efficient infrastructure that underpins our daily lives, supports communities and enables economic growth.
We finance, develop, build and maintain complex infrastructure such as transportation, power and utility systems, social and commercial buildings. Our main geographies are the UK, US, Middle East and South East Asia. Over the last 100 years we have created iconic buildings and infrastructure all over the world including the London Olympics’ Aquatic Centre, Hong Kong’s first Zero Carbon building, the world’s biggest shopping mall in Dubai, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.
