Equion, the investment vehicle wholly owned by John Laing, has sold its 50% stake in Defence Management Holdings to services company Serco for £5.9m.

Defence Management won the PFI contract to design, build, finance, operate and maintain the Joint Services Command and Staff College in Shrivenham, Oxfordshire, where construction was completed in August 2000.

Serco was already a 50% shareholder in the venture, and the contract does not expire until 2028.

Laing’s interest in the investment had been carried on the balance sheet at a net liability of £1.9m because of cash distribution and profit recognition. The company will record a £7.8m profit on the disposal in the current financial year.

The proceeds from the sale will be reinvested in Laing’s infrastructure business. Andy Friend, Laing chief executive, said the disposal was in line with company strategy to sell some equity stakes, although it “will be maintaining long-term stakes in operational projects”.