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Kier sells further PFI stakes for £5.4m

Kier has sold its 50 per cent interest in two PFI projects for £5.4 million.

Kier sold its investment in Greenwich Neighbourhood Resource Centres, which provided care homes ot the elderly, to its co-investor Sanctuary Housing Association yesterday.

The contractor also sold its investment in the Bournemouth library project to Equitix Education 2 Limited in August. That was reported as a 30-year, £67m deal at the time in 2000.

Kier built both the £19m library and the £10m care homes and provided facilities management for both projects, which it will continue to do for a further 22 years in Greenwich and 20 years on the Bournemouth scheme.

The sale represents an average valuation discount rate on the base case cash flows of around 7 per cent and will be included in the 2012/13 financial statements.

Chief executive Paul Sheffield said: “Both of hese projects are good examples of Kier providing a comprehensive and fully-integrated service to clients, with both our construction and facilities management businesses working well together.

“The sales continue our strategy of selectively realising the value of our PFI portfolio for subsequent re-investment in the group.”

Kier sold £8.1m worth of stakes in two hospitals in December last year.

Interserve announced further PFI sales last week, with the £89.5m disposal of 19 PFI investments.

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