Firm says disposal of investments in two accommodation projects will reduce group's net borrowing

Carillion has sold equity stakes in two PPP projects to investment group Innisfree for £86.9m and said it expects to be in a net cash position by the end of the year.

The contractor said it had disposed of 65% of its investment in military accommodation scheme Allenby Connaught and 50% of its interest in GCHQ’s New Accommodation Project in Cheltenham.

The firm said the sales were in line with its policy of “recycling” equity in its PPP investments and the proceeds would be used to reduce the group’s net borrowing.

It said: “Following the receipt of these proceeds the Group now expects to move to a net cash position by 31 December 2009.”