Carillion has sold equity in two of its Public Private Partnership projects to infrastructure investment group Innisfree for £86.9 million.
The contractor has sold 50 per cent of its 40 per cent interest in the New Accommodation, Cheltenham, project and 65 per cent of Carillion’s 50 per cent interest in the Allenby Connaught project - a Ministry of Defence accommodation scheme.
At 31 December 2008, the combined value of these assets in Carillion’s balance sheet was £76.7 million and the total combined pre-tax profit attributable to them was £7.5 million in 2008.
These disposals are in line with Carillion’s policy of recycling equity in its investments in Public Private Partnership projects and the proceeds will be used to reduce the company’s net borrowing.
Following the receipt of the equity Carillion now expects to move to a net cash position by 31 December 2009.