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.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
"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%.
King Charles banknotes to enter circulation in June
New banknotes featuring the King will enter circulation on 5 June – here’s what they will look like and what you need to know about your old notes.
By Katie Williams Published
Metro Bank to slash 5.22% savings rate for current customers- what’s the next best alternative?
Metro Bank is set to cut the rate on its best buy instant access saver for existing customers. Is there an alternative on the market and should you switch now?
By Vaishali Varu Published