Balfour Beatty sells stake in Purdue University student accommodation asset
Infrastructure group Balfour Beatty has sold its 67% interest in Aspire at Discovery Park, the on-campus student accommodation at Purdue University in West Lafayette, Indiana.
Balfour Beatty said on Tuesday that Purdue Research Foundation will purchase the property for $150.0m, with the transaction expected to complete in August.
The FTSE 250-listed firm stated that its share of the net proceeds was $62.4m and will be used for general corporate purposes, with the sale set to generate a profit on disposal of $47.2m.
Balfour Beatty added that the disposal proceeds will be used to repay debt outstanding against the property and transaction fees, with the remainder distributed to both the firm and co-investors.
"The disposal proceeds are in excess of the Balfour Beatty directors' valuation as of 31 December 2021, consistent with Balfour Beatty's strategy of optimising value through the disposal of operational assets, whilst continuing to invest in new asset opportunities," said the group.
Reporting by Iain Gilbert at Sharecast.com