Balfour Beatty has sold its interests in three UK assets from its infrastructure investments portfolio as part of a strategy to optimise value through the disposal of operational asset
The three UK assets sold from Balfour’s infrastructure investments portfolio include: Aberdeen Western Peripheral Route, Woodland View Hospital and North West Fire & Rescue.
Balfour Beatty’s interests have been acquired by a subsidiary of BBGI Global Infrastructure S.A and are subject to final funder clearance, which is expected imminently.
The disposal proceeds are in excess of the directors’ valuation as of 31 December 2020, consistent with Balfour Beatty’s strategy of optimising value through the disposal of operational assets, whilst continuing to invest in new equity opportunities.
Disposal of infrastructure investment assets
At the start of June, Balfour sold its 70% stake in a Canadian hospital redevelopment project raising £20m.
The company said it had booked £7m profit from the sale.
In Balfour’s full-year results for 2020, the company revealed it had enhanced capacity to drive cash generation through earnings growth and would restart disposals of investments assets.
As a result of market uncertainty caused by Covid-19, in 2020 Balfour Beatty did not dispose of any investments assets. In 2021, the group re-commenced the sale of investments assets timed to optimise value to shareholders, as demand for high quality infrastructure assets in the secondary market is expected to exceed supply.
