Firm has sold interests in two major PFI hospital projects

Kier has confirmed the sale of its 50% interests in two major PFI projects.

On Wednesday, Kier transferred its investment in the Hinchingbrooke Hospital project to the Kier Group Pension Scheme for a consideration of £3.1m following the sale of its investment in the West Berkshire Hospital project to the Innisfree PFI Continuation Fund for a consideration of £5m at the end of last month.

The sales - for which Kier has already been paid in cash - are in line with its policy of selectively realising the value of the equity in its PFI portfolio, the company said.

Kier built both of the hospitals and has also been providing facilities management services at Hinchingbrooke, which it is contracted to continue to do for a further 27 years.

The aggregate consideration for the disposals gives rise to a profit of £6.8m, which will be disclosed in Kier’s end of year financial statements at the end of June 2012.