Land Securities Group PLC has announced that its property partnership business, Land Securities Trillium (LST), has exchanged contracts with AMEC plc for the purchase of AMEC's Project Investments business. Project Investments includes AMEC's interests in nine signed Private Finance Initiative (PFI) projects, one preferred bidder project and the PFI/PPP bidding and asset management team.
LST has agreed a cash consideration of £163.5 million (approx. €224 mln) for Project Investments. The transaction is subject to receiving consents from public authorities and lenders to the PFI projects. If consents are not given or co-shareholders exercise existing pre-emption rights in relation to some of the assets, the consideration paid by LST will be adjusted accordingly.
It is anticipated that the deal will be completed by 31 October 2007.
Project Investments has been involved in the UK PFI/PPP market since the introduction of the Private Finance Initiative and has a specialist team of professionals engaged in the complete PFI/PPP delivery structure, from front end bidding to long-term management of the investment.
The nine PFI projects in Project Investments are all in the UK and focused on the healthcare, transport and education sectors including Cumberland Infirmary, one of the country's first operational PFI hospitals and the South Lanarkshire Schools PFI, one of the largest schools PFI projects to date.
Ian Ellis, Chief Executive of LST, said, "Project Investments offers an excellent fit with the existing LST business and reinforces our presence in the Community Infrastructure market. It brings us a top quality portfolio of assets and a high calibre team of people who have a long and successful track record in bidding major PFI/PPP projects."
Source: Land Securities