Member Article

Balfour Beatty disposes of West Yorkshire hospital project in £61.5 million deal

International infrastructure group Balfour Beatty, has sold its 50% interest in the Pinderfields and Pontefract Hospital PPP project in West Yorkshire to a current co-shareholder.

Pinderfields is being acquired by the current co-shareholder, a subsidiary of HICL Infrastructure Company Limited, the listed infrastructure investment company advised by InfraRed Capital Partners.

Balfour Beatty says the consideration of £61.5 million exceeded its expectations, generating a gain on disposal of £42.2 million.

The proceeds exceed the revised Directors’ Valuation by £13.5 million, representing an uplift of 28%.

In August 2014 Balfour Beatty published a review of the Directors’ Valuation of the PPP portfolio, which resulted in the UK portfolio valuation increasing by 63% to £801 million, and the total portfolio increasing in value by 46% to £1.05 billion, as at June 2014.

Ian Rylatt, CEO of Balfour Beatty Investments, said: “This disposal supports the substantial increase in the Directors’ Valuation of the PPP portfolio, whilst also demonstrating that the valuation maintains a level of prudence. We continue to see a strong pipeline of opportunities and therefore, in line with our strategy of recycling equity, the proceeds will be invested in new projects as we continue to diversify our business.”

This was posted in Bdaily's Members' News section by Ellen Forster .