16 December 2011
Kier sells its investments in the West Berkshire and Hinchingbrooke Hospital PFI Projects
Kier Group plc announces that it has completed the sale of its 50 per cent. interests in two Private Finance Initiative (PFI) projects. On 28 November (Stuttgart: A0Z24E - news) 2011, Kier sold its investment in the West Berkshire Hospital project to the Innisfree PFI Continuation Fund for a consideration of £5.0 million. On 15 December 2011, Kier transferred its investment in the Hinchingbrooke Hospital project to the Kier Group Pension Scheme for a consideration of £3.1m.
The consideration for both sales was paid in cash in full on completion. The sales are in line with Kier's policy of selectively realising the value of the equity in its PFI portfolio.
Kier constructed both of the hospitals and has also been providing the facilities management services at Hinchingbrooke Hospital, which it is contracted to continue to do for a further 27 years.
The aggregate consideration for the disposals gives rise to a profit of £6.8 million, which will be disclosed in Kier's financial statements as at, and for the year ending, 30 June 2012, and represents a valuation discount rate on the base case cash flows of approximately 7 per cent.
Kier Group 01767 640111
RLM Finsbury 020 7251 3801
Notes to editors:
Kier Group is a leading construction, services and property group specialising in building and civil engineering, support services, public and private house building, property development and the Private Finance Initiative.
For more information contact the Kier Group communications department on: 01767 640 111 or visit www.kier.co.uk#