Midlands engineering and construction giant Carillion has sold its stake in four public private partnership (PPP) projects.
The move generated £35.9 million, an average discount rate of below 5.5 per cent.
The projects in which Carillion has sold its investments are Lewisham Hospital, James Cook University Hospital, Barnsley Schools and Redcar and Cleveland Schools.
Following the sale, Wolverhampton-based Carillion has 21 financially closed projects in which it has invested, or has commitments to invest, approximately £175 million.Carillion has projects for which it is either preferred bidder or shortlisted, which together have a potential equity requirement of up to £80 million.
It expects continuing opportunities to win further projects in the UK and Canada, which have PPP programmes in Carillion’s key market sectors.
Chief executive, John McDonough, said: “This sale of PPP equity investments has once again demonstrated the value we are generating through
Carillion’s ability to provide fully integrated solutions for PPP projects, including project finance, design, construction, maintenance and whole-life asset management, which helps us win projects and deliver them successfully into the operational phase.”
Carillion has annual revenue of around £5 billion, employs around 50,000 people and operates across the UK, in the Middle East, Canada and the Caribbean. I
t has a substantial portfolio of equity investments in public private partnership projects in the UK, its principal market sectors being defence, education, health, facilities management and services, rail, roads, building, and civil engineering.