Laing, Wimpey sell property

Laing and Wimpey - two construction groups committed to ploughing more money into privately funded schemes - have just raised œ180 million from major property disposals.

Laing has offloaded the Castle Court shopping centre in Belfast to MEPC in a deal worth a minimum of œ85 million. The company announced in March it would progressively sell off properties over the next two years to generate cash for more lucrative private schemes. Last week Laing launched a ground-breaking œ25 million private hospital scheme in the UK and is already active in private power schemes in Malaysia.

Wimpey has raised œ95 million by selling 50% of its prestige Little Britain development - 'it is a further step in realising portfolio assets for investment in our core activities, consistent with our strategy' said chief executive Joe Dwyer.

At Wimpey's results, Dwyer revealed that strategy includes the aim of pulling away from traditional contracting, where profits have already halved to a paltry œ2 million. Instead he promised resources would be diverted to 'investment-led contracting', where Wimpey would build up a portfolio of schemes around the world offering double digit margins.