21st Dec 2009 16:21
21 December 2009
Kier sells its investments in the Waltham Forest Schools PFI and Tendring Schools PPP Projects
Kier Group plc has sold its investments in two Private Finance Initiative (PFI) projects, Waltham Forest Schools and Tendring Schools, to Innisfree PFI Secondary Fund for a combined cash consideration of £7.3m. Kier completed the construction of the schools some time ago and they have been operating successfully for a number of years with Kier Facilities Services delivering the facilities management services. Following the disposal Kier will continue to provide the facilities services under the current contracts for a further 24 years in the case of Tendring and 26 years in the case of Waltham Forest.
The consideration of £7.3m for the shares and loan notes comprising Kier's 50% interest in each of the two PFI projects gives rise to an 'exceptional' profit of £4.2m which will be disclosed in the interim results for the six months to 31 December 2009. The sales price represents a valuation discount rate on the base case cash flows of around 8.0%.
The disposals are in line with Kier's policy of recycling equity in its PFI portfolio and bring the total number of PFI investments it has sold to four.
Ends
Contacts:
Deena Mattar
Group Finance Director
Kier Group 01767 640111
Faeth Birch
Conor McClafferty
Finsbury 020 7251 3801
Related Shares:
Kier