Kier sells interest in two PFI projects

RNS Number : 9461O

Kier Group PLC

18 October 2012

 



Kier Group plc

Kier sells its investment in the Bournemouth Library and Greenwich Neighbourhood Resource Centres PFI projects

Kier Group plc announces that it has completed the sale of its 50 per cent. interest in two Private Finance Initiative (PFI) projects.  On 7 August 2012, Kier sold its investment in the Bournemouth Library project to Equitix Education 2 Limited.  On 17 October 2012, Kier sold its investment in the Greenwich Neighbourhood Resource Centres project to its co-investor, Sanctuary Housing Association.

The aggregate consideration for the two sales was £5.4 million and, in each case, was paid in cash in full on completion.  This represents an average valuation discount rate on the base case cash flows of approximately 7 per cent. and will be disclosed in Kier's financial statements as at, and for the year ending, 30 June 2013.

Kier constructed both the library and the care homes and has also provided the facilities management services for both projects, which it will continue to do for a further 20 years (Bournemouth) and 22 years (Greenwich). 

Kier Group plc chief executive, Paul Sheffield, commented: "Both of these projects are good examples of Kier providing a comprehensive and fully-integrated service to clients, with both our construction and facilities management businesses working well together. The sales continue our strategy of selectively realising the value of our PFI portfolio for subsequent re-investment in the Group."

Contacts:

Alan Smith

Kier Group 01767 640111

Faeth Birch

Conor McClafferty

RLM Finsbury 020 7251 3801

 

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