Wolverhampton-based Carillion has agreed to sell its equity in three fully operational Public Private Partnership projects to Land Securities Group's Trillium arm for £21.5 million.
The construction company, which this month agreed a £572 million cash-and-share offer for Alfred McAlpine, is offloading its equity holdings in the Great Western Hospital in Swindon, Harplands in North Staffordshire and Glasgow's Southern General.
The transactions, which are expected to be completed by the end of December will also generate an exceptional profit of a broadly equal amount, the company said.
Following the equity sale, Carillion said it will have 22 financially closed projects in which it has committed a total of £171 million.
Land Securities Trillium, in its turn, plans to sell its PPP portfolio to the new Trillium Partners fund, a joint venture established to enable third party investors to gain exposure to its PPP contracts and free up capital to compete for new contracts.
The division has interests in over 100 PPP projects, mostly in education and health.
Last week, the company said Trillium Partners had raised over 83 per cent of its initial capital requirement of £1.136 billion, including a £568 million debt package, and expects to reach financial close in March 2008.
Then, it will begin buying projects from Land Securities Trillium, starting with the Secondary Market Infrastructure Fund assets acquired for £527 million plus £400 million in debt a year ago.
This summer, the company also bought Amec's project investment business and PPP/PFI portfolio for £163.5 million in cash.
Meanwhile, its parent company Land Securities last month said that it would push ahead with its plan to split its £15 billion property portfolio into three separately-quoted businesses, hiving-off its property retail division, its London property assets and its Trillium property outsourcing arm into three listed entities. :