Balfour Beatty has sold a proportion of its interests in five street lighting PFI projects for £33m.
The contractor – which this week revealed it had made £100m in cost cuts over the last two years – struck the deal with funds managed by investment firm Equitix.
It will see the funds take on 80 per cent of Balfour’s interests in 25-year PFI agreements with local councils in Sunderland, South Tyneside, Coventry, Cambridgeshire and Northamptonshire.
Balfour Beatty undertook the initial £250m construction work on the street lighting and will continue to maintain the infrastructure under maintenance contracts.
The contractor told the City in a statement today: “The proceeds from the transaction are in excess of the directors’ valuation.
“Balfour Beatty may receive further cash consideration when the latest results of a number of the projects are determined.”