Interserve in £35m PFI sale to Credit Suisse vehicle

The services group is selling a 16.7% stake in the University College London Hospitals project to CFIG Unicorn Holdings.

International support services and construction group Interserve has agreed to sell part of its stake in the University College London Hospitals project to an investment vehicle managed by Credit Suisse.

The deal, worth some £35 million (€43 million; $55 million) in total, involves a three-pronged restructuring of Interserve’s stake in the healthcare Project Finance Initiative (PFI) project and will leave Interserve and Credit Suisse’s CFIG Unicorn Holdings with a 16.7 percent stake each in the asset.

“The sale of part of our interest in the University College London Hospitals PFI project demonstrates the ongoing enactment of our strategy of making our PFI portfolio self-financing over the medium term,” commented Tim Haywood, Interserve’s group finance director. “Our approach is to dispose of assets once we have added most of the value possible in a given contract,” he added.

Interserve was part of the original consortium that won the PFI project in 2000, which also included UK developer Balfour Beatty. The PFI contract will last until 2040, when the hospital will revert to the National Health Service.

The UK-based services group employs over 50,000 people across the world and generated £2.3 billion of gross revenue last year. Interserve is listed in the FTSE250 index.