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Kier sells PFI stake in Scottish hospital

Kier has sold its 50 per cent PFI stake in Hairmyres Hospital in East Kilbride to Innisfree M&G PPP fund for £13.8 million in cash.

The sale is set to make a profit of around £16 million to be disclosed in the second half of Kier’s financial year.

Around £2.2 million of the total comes from deferred profit following a financing in August 2004. The deal will give a return of around five times its original investment.

Hairmyres was one of Kier's first investments in a PFI project, which achieved financial close in March 1998. It is a district general hospital with a 24-hour accident and emergency department and 415 inpatient and day care beds.

The firm will announce its interim results for the six months to 31 December on 27 February.