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Interserve sells London hospital PFI stake for £35m

Interserve has sold part of its holding in the University College London Hospitals PFI project for £35 million.

The move follows its 21 June announcement of the deal with CFIG Unicorn Holdings SPV, LLC. The sale implies a discount rate of under 6 per cent and will have a non-recurring 2012 profit impact of £30m.

The £422m private finance initiative project - a 75,822 sq m hospital provides 665 in-patient beds - opened in 2005.

Interserve is a member of the Health Management (UCLH) consortium at University College London Hospital and equity participant and facilities management provider in a consortium with Balfour Beatty and Semperian.

Interserve sold half of its previous 33 per cent holding in the project to the CFIG Fund, which has also exercised the option granted by Interserve to purchase Interserve’s share of its pre-emption rights in relation to 80 per cent of Balfour Beatty’s 33 per cent holding.

A statement to the Stock Exchange said the transaction has generated £35m in cash for Interserve, which retains ownership of 16.7 per cent of the project.

The 38-year PFI deal with UCLH NHS Foundation Trust was one of the largest PFI healthcare projects ever awarded, covering a variety of services from catering to engineering. It includes 80 buildings across four main sites, with offices, residential and large acute sites and dental hospitals on the estate.

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