Skanska demonstrates its confidence in long-term infrastructure projects through buying interests in five PFI projects.
The Skanska Pension Fund (Skanska UK’s main pension scheme) has purchased Skanska Infrastructure Development’s (Skanska ID) interest in three school and two street lighting projects for approximately £22 million.
Skanska ID is a leader in the global public private partnerships (PPP) market. The business unit invests in, develops and operates roads, hospitals, schools, power plants and other social infrastructure in partnership with the public sector.
It held 45 to 53 per cent equity in the three school projects – Bristol (45.5%), Essex (52%) and Woodlands (53%), and 50 per cent equity in the street lighting projects in Surrey and Croydon. It retains an indirect 7 to 8 per cent share of the three school projects.
Skanska UK will continue to manage and carry out construction, maintenance and operation services on these projects.
Harvey Francis, Chairman of the Skanska Pension Fund Trustee Board, said:
“This acquisition, which was concluded after the Trustees obtained expert independent valuations, provides the pension scheme with valuable assets in the form of a stable, long term cash flow.
“The acquisition is an example of maximising the benefits of excellent internal Skanska relations, while achieving a fair price for both parties.”
Notes to editors
The acquisition has been financed by a lump-sum payment into the Pension Fund by Skanska UK, demonstrating Skanska’s continuing support for the pension scheme.
As well as the £22 million, Skanska has committed to paying a further £18 million to the Fund over two years. About £10.5 million of this additional amount will be required by the Fund to subscribe for loan notes as part of the infrastructure deal.
The transaction will be recorded by Skanska in the second quarter of 2013.