Balfour Beatty, the international infrastructure group, today announces the sale of its 67% interest in Aspire at Discovery Park (the “Property”), the on-campus student accommodation at Purdue University in West Lafayette, Indiana.
Purdue Research Foundation, which is acquiring the entire property, is acquiring Balfour Beatty’s full 67% interest. The transaction, which is subject to contractual conditions, is expected to complete in August. The consideration for the Property is $150 million (£122 million), which is payable at completion.
The disposal proceeds will first be applied to repay the debt outstanding against the Property and transaction fees, with the remainder distributed to Balfour Beatty and co-investors. Balfour Beatty’s share of the net proceeds is $62.4 million (£50.7 million) and will be used for general corporate purposes. The sale will generate a profit on disposal for Balfour Beatty of $47.2 million (£38.4 million).
The disposal proceeds are in excess of the Balfour Beatty Directors’ valuation as of 31 December 2021, consistent with Balfour Beatty’s strategy of optimising value through the disposal of operational assets, whilst continuing to invest in new asset opportunities.
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This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
- Summary financial information relating to the Property being transferred as included in Balfour Beatty Group accounts for the year ended 31 December 2021 is as follows:
Property ($ millions)
Share of Joint Venture assets on Balance Sheet
Profit Before Tax
- The gross proceeds were $150 million (£122 million) at the 100% level. Balfour Beatty’s share after repayment of debt and transaction costs, results in net cash proceeds of $62.4 million (£50.7 million), and an accounting profit of $47.2 million (£38.4 million) based on net book value of the asset at disposal of $15.2 million (£12.3 million). (All Sterling numbers calculated at $1.23 : £1)
Notes to Editors
- Balfour Beatty is a leading international infrastructure group with 24,500 employees driving the delivery of powerful new solutions, shaping thinking, creating skylines and inspiring a new generation of talent to be the change-makers of tomorrow.
- We finance, develop, build, maintain and operate the increasingly complex and critical infrastructure that supports national economies and deliver projects at the heart of local communities.
- Over the last 113 years we have created iconic buildings and infrastructure all over the world including: the £1.5 billion A14 improvement scheme - Britain's biggest road project; Hong Kong's HK$5.5 billion world-class harbour theatre project for the West Kowloon Cultural District Authority; and the 12.5 mile $429 million North Metro Commuter Rail line in Colorado, US.
- Balfour Beatty Investments is an international infrastructure investor operating in the UK and US. We provide the investment capability required to deliver complex infrastructure projects. Over the past 25 years, Balfour Beatty Investments has established itself as one of the largest infrastructure investors, building a portfolio of 67 projects worldwide, predominantly in the UK and North America.
- In recent years, Balfour Beatty Investments has diversified into new markets including student accommodation, private rental sector housing (multi-family housing in the US) and generation and transmission of renewable energy.