12th Jul 2022 08:16
(Alliance News) - Balfour Beatty PLC on Tuesday said it has sold its 67% stake in Aspire at Discovery Park, the on-campus student accommodation at Purdue University in West Lafayette, Indiana.
The London-based infrastructure construction company said the Purdue Research Foundation has bought the entire property for USD150.0 million.
As part of the deal, Balfour Beatty will receive USD62.4 million for its 67% stake, after repayment of debt and transaction costs. The company will therefore generate a USD47.2 million profit on disposal, based on the property's net book value of USD15.2 million.
The company said: "The disposal proceeds are in excess of the Balfour Beatty directors' valuation as of December 31, 2021, consistent with Balfour Beatty's strategy of optimising value through the disposal of operational assets, whilst continuing to invest in new asset opportunities."
Balfour Betty added that it will use the proceeds to repay its outstanding debt against the property and transactions fees, whilst the remainder will be distributed to both the company and its co-investors.
The transaction is expected to be complete in August.
Shares in Balfour Beatty were 0.2% higher at 264.30 pence each in early trade in London.
By Sophie Rose; [email protected]
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