Balfour Beatty sells 67% interest in Purdue Uni

RNS Number : 0915S

Balfour Beatty PLC

12 July 2022

 

News Release

12 July 2022

BALFOUR BEATTY ANNOUNCES SALE OF 67% INTEREST IN PURDUE UNIVERSITY ASSET

Balfour Beatty, the international infrastructure group, today announces the sale of its 67% interest in Aspire at Discovery Park (the "Property"), the on-campus student accommodation at Purdue University in West Lafayette, Indiana. 

Purdue Research Foundation, which is acquiring the entire property, is acquiring Balfour Beatty's full 67% interest. The transaction, which is subject to contractual conditions, is expected to complete in August. The consideration for the Property is $150 million, which is payable at completion.

The disposal proceeds will first be applied to repay the debt outstanding against the Property and transaction fees, with the remainder distributed to Balfour Beatty and co-investors.  Balfour Beatty's share of the net proceeds is $62.4 million and will be used for general corporate purposes. The sale will generate a profit on disposal for Balfour Beatty of $47.2 million.

The disposal proceeds are in excess of the Balfour Beatty Directors' valuation as of 31 December 2021, consistent with Balfour Beatty's strategy of optimising value through the disposal of operational assets, whilst continuing to invest in new asset opportunities.

ENDS

Investor and Analyst enquiries:

Phil Harrison

Tel: [phone]

[e-mail]

Media enquiries: 

Antonia Walton
Tel. [phone]
[e-mail]  

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014. 

Financial Notes

· Summary financial information relating to the Property being transferred as included in Balfour Beatty Group accounts for the year ended 31 December 2021 is as follows:

	Property ($ millions)
Share of Joint Venture assets on Balance Sheet	16.1
Profit Before Tax	0.2

Notes to Editors

· Balfour Beatty is a leading international infrastructure group with 24,500 employees driving the delivery of powerful new solutions, shaping thinking, creating skylines and inspiring a new generation of talent to be the change-makers of tomorrow.

· We finance, develop, build, maintain and operate the increasingly complex and critical infrastructure that supports national economies and deliver projects at the heart of local communities.

· Over the last 113 years we have created iconic buildings and infrastructure all over the world including: the £1.5 billion A14 improvement scheme - Britain's biggest road project; Hong Kong's HK$5.5 billion world-class harbour theatre project for the West Kowloon Cultural District Authority; and the 12.5 mile $429 million North Metro Commuter Rail line in Colorado, US.

· Balfour Beatty Investments is an international infrastructure investor operating in the UK and US. We provide the investment capability required to deliver complex infrastructure projects. Over the past 25 years, Balfour Beatty Investments has established itself as one of the largest infrastructure investors, building a portfolio of 67 projects worldwide, predominantly in the UK and North America.

· In recent years, Balfour Beatty Investments has diversified into new markets including student accommodation, private rental sector housing (multi-family housing in the US) and generation and transmission of renewable energy.

 

END

 

 

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