Balfour Beatty plc (LON:BBY) said it made its first disposal from its £1.1bn Infrastructure Investments asset portfolio since 2019 and expects to sell further assets later this year.
The international infrastructure group announced the sale of its 70% interest in the BC Children's & BC Women's Hospital Redevelopment Project Phase 2 - Teck Acute Care Centre, located in Vancouver, Canada.
The disposal proceeds of about £20mln exceed Balfour Beatty’s valuation as at the end of 2020.
The pre-tax profit on disposal is £7mln with the end to end investment multiple (total cash received/total cash invested) in excess of the group's 2x target, it said.
Balfour Beatty said the disposal is consistent with its strategy of optimising value through the disposal of operational assets, whilst also continuing to invest in new equity opportunities.
“The secondary market for assets remains very strong and the group is expected to dispose of further assets in the second half of the year,” it said.