Kier sells stakes in two PFI projects

Construction and engineering giant Kier has sold its interests in two private finance initiative (PFI) projects, Bournemouth Library and Greenwich Neighbourhood Resource Centres.

Kier announced on Thursday morning that it had completed the sale of its 50% stake in the two projects for a total £5.4m in cash.

It sold its investment in the Bournemouth Library project to Equitix Education 2 in August and offloaded the Greenwich Neighbourhood Resource Centres project this week to its co-investor, Sanctuary Housing Association.

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"Both of these 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," said Kier's Chief Executive Paul Sheffield.

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

The sale price of both projects represents an average valuation discount rate on the base case cash flows of around 7%.