Balfour Beatty, the international infrastructure group, announces the disposal of an 80% interest in the Thanet offshore transmission project ("Thanet OFTO”) for £40 million. The proceeds are consistent with the most recent Directors’ Valuation.
Thanet OFTO is the high-voltage electricity transmission system connecting the 300MW Thanet Wind Farm, off the coast of Kent, to the onshore transmission grid. Assets include one offshore and one onshore substation and over 50 kilometres of subsea cables which are operated and maintained by Balfour Beatty's Services division under a 20 year licence granted by the energy regulator Ofgem. The wind farm generates enough electricity for approximately 200,000 homes each year.
The 80% interest in Thanet OFTO is being acquired by funds managed by Equitix, a market leading investor and fund manager of core infrastructure assets. Balfour Beatty has co-invested with Equitix on a number of infrastructure projects, including the Greater Gabbard OFTO project, which achieved financial close in November 2013 and the Gwynt y Môr OFTO project, which is expected to achieve financial close in February 2015.
Leo Quinn, Balfour Beatty Group Chief Executive, said: “This disposal validates the Directors’ Valuation of the Investments Portfolio, which was updated last month, and clearly demonstrates the Investment business’s ongoing ability to deliver significant value for the Group. The OFTO sector remains a key market, which is why we have retained 20% ownership in Thanet, and we look forward to working with our partner, Equitix, to ensure the long term success of this project."
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Notes to editors:
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.