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Olympic Park Management Division 'For Sale'

(c) Sky News 2012

The facilities management firm which has a contract to oversee parts of London's Olympic Park is being groomed for a sale just weeks after the end of the Paralympic Games.

I understand that Balfour Beatty (Other OTC: BAFBF.PK - news) , the FTSE 250 (FTSE: ^FTMC - news) support services group, is examining a potential sale or separation of its Workplace division, which analysts say could be worth in the region of £300m.

The unit has a 10-year contract from 2013 to manage the ArcelorMittal Orbit as well as other buildings within the Olympic Park.

Workplace, which also has contracts with large infrastructure businesses including UK Power Networks and EDF Energy, could be sold within months, according to insiders.

Citi, the investment bank, has been lined up to handle the sale process, which sources said would be aborted if it failed to secure an attractive price.

It is unclear why Balfour Beatty's management has chosen to explore a sale now.

The decision to explore a separation of Workplace follows an announcement last month by Balfour Beatty about a shake-up of its construction services division that will involve reducing the number of brands under which it operates and a centralisation of some functions as it looks to shed costs.

Balfour Beatty declined to comment.