Balfour Beatty has announced the sale of its 50% interest in the Royal Infirmary of Edinburgh project for a consideration of £72 million (US$109 million).
The proceeds from the transaction are consistent with the most recent Directors' valuation.
The investment is being acquired by funds managed by Equitix, an 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.
The Royal Infirmary of Edinburgh is a major acute teaching hospital. With a 24-hour accident and emergency department, it provides a full range of acute medical and surgical services for patients from across Lothian and specialist services for people from across the south east of Scotland and beyond.
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."