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Balfour Beatty sells Salford PFI hospital stake

Balfour Beatty has announced the sale of its 50 per cent stake in Salford hospital PFI to an international infrastructure group.

The sale of the stake to a subsidiary of HICL Infrastructure Company for a £22m generated a gain on disposal of £11.5m.

Balfour Beatty chief executive Andrew McNaughton said: “It is pleasing to see that our strategy of regular asset disposals to release some of the accumulated value in our portfolio continues to deliver additional income and cash to the Group.

“With the completion of the Salford Hospital sale, we have achieved £80.5m of proceeds and £44.9m of gains on PFI disposals so far this year.”

In May, Balfour Beatty sold its 50 per cent interest in the Tameside Hospital PFI to HICL for £16m, generating a gain on disposal of £9m.

The firm also sold its 50 per cent interests in four PFI schools for £42.5m.

Balfour Beatty recently announced the sale of its stake in Exeter Airport to the aviation branch of Rigby Group after the value of that investment had been written down to nil in 2012.

Morgan Sindall last week sold an £8.4m interest in the Miles Platting PFI social housing scheme, for a net profit of £4.4m

The PFI contract was signed in 2007 between Manchester City Council and the Renaissance Consortium – consisting of Lovell, investment body IIC, and housing association Adactus.

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