Kier in wheeling and dealing mode

A selloff of two hospital PFI projects resulted in a £8.2 million profit. The company is also in a reported deal to unload 3 Savile Road, the onetime home office of The Beatles.

Kier Group peeled off a chunk of its healthcare private finance initiative (PFI) portfolio, according to a press release from the company.

The civil engineering, construction, property management and development outfit revealed a December 15 transfer of its investment in Hinchingbrooke Hospital to Kier Group Pension Scheme for £3.1 million (€4.4 million; $5.7 million). Kier also disclosed a £5.1 million sale of its West Berkshire Hospital project to the Innisfree PFI Continuation Fund.

The West Berkshire deal took place on November 28, the release claimed, with Kier under a 27-year contract to continue providing facility management services to the hospital. The release went on to state that each deal was “in line” with its plan of  “selectively realising the value of equity in its PFI portfolio”. 

Kier is also said to have sold its 3 Savile Road property, a building famous for housing Apple, a record label founded by The Beatles in 1968. The legendary rock band performed its last ever live show on the roof of the building, which Kier reportedly sold to GHSR for £31.85 million.

In May, Kier Project Investment, a specialised public-private partnership (PPP) arm of Kier, sold £17.2 million of its educational facility portfolio to InfraRed Capital, a spinoff of HSBC Bank.

Kier Group came into existence in 1928, when Jorgen Lotz and Olaf Kier opened a Stoke-on-Trent, Staffordshire, England, engineering concern. The firm debuted on the London Stock Exchange in 1963.