(RTTNews) - Infrastructure group Balfour Beatty plc (BBY.L) announced Tuesday the sale of its 67% interest in Aspire at Discovery Park, the on-campus student accommodation at Purdue University in West Lafayette, Indiana.
Purdue Research Foundation, which is acquiring the entire property, is buying Balfour Beatty's full stake. The consideration for the Property is $150 million, which is payable at completion.
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 transaction is expected to complete in August, subject to contractual conditions.
Balfour Beatty expects to use disposal proceeds to repay the debt outstanding against the Property and transaction fees, with the remainder distributed to Balfour Beatty and co-investors.
The company said the disposal proceeds are in excess of its Directors' valuation as of December 31, 2021, consistent with its strategy of optimising value through the disposal of operational assets, whilst continuing to invest in new asset opportunities.
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