International infrastructure group Balfour Beatty has sold its interest in the 25-year £157m Knowsley Building Schools for the Future project for £42m.
Balfour Beatty replaced 10 ageing secondary schools with seven new schools in partnership with Knowsley Council. The stake was acquired by funds managed by Dalmore Capital.
Balfour Beatty's interest in Knowsley was sold alongside a 50% interest in the University Hospital of North Durham PPP project, also to Dalmore Capital, for £55m.
The company said the proceeds from these transactions exceeded the directors' valuations by £44m, representing an uplift of 82%.
Balfour Beatty said the sales were part of its strategy to recycle equity invested in its portfolio, and further demonstrate the quality of the investment portfolio and its ability to generate value for shareholders. The proceeds will be used to invest in new and existing projects.
Steve Marshall, executive chairman at Balfour Beatty, said: "These disposals are in line with our strategy to generate income from our infrastructure investments business through disposals, thereby releasing cash for future investments and delivering value for our shareholders."