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The firm disposed its 50% interest in the University Hospital of North Durham and its 100% interest in the Knowsley Building Schools for the Future BSF project. 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.
The transaction, for a total consideration of £97 million, exceeded valuations by £44 million and resulted in total gains of £51 million for the contractor. The proceeds 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.
Steve Marshall, Balfour Beatty Executive Chairman. stated:
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.
Balfour Beatty plc is a global infrastructure company that delivers services to the development, creation and care of infrastructure assets; from finance and development, through design and project management to construction and maintenance.