Land Securities buys Amec's Projects Investments business for £163.5m

Land Securities' property partnership business Land Securities Trillium (LST) has picked up Amec's healthcare, transport and education PFI interests as part of its £163.5m acquisition of Amec's Projects Investments business.

The deal will see Land Securities take on nine signed PFI projects, including Cumberland Infirmary, one of the country's first operational PFI hospitals and South Lanarkshire Schools PFI, one of the largest PFI schools projects so far. It will also take control of one preferred bidder project and Amec's PFI/PPP bidding and asset management team.

This purchase leaves only Amec's Building and Facilities Services arm left to sell, as the firm continues its disposal programme to concentrate on consultancy, engineering and project management.

Five specialist non-core businesses have been sold in the last three months: AMEC SPIE Rail, Buchan Concrete Solutions, Dynamic Structures, AMEC SPIE Capag and Midwest Pipelines. The PFI division – known as Project Investments - has been in the UK Public Private Partnerships market since the introduction of the Private Finance Initiative. Project Investments has a portfolio of nine PPP projects in the UK focused on the transport, healthcare and education sectors.

Land Securities said that it expected the deal to be completed by the end of October this year, although it is subject to receiving consent from public authorities and lenders to the PFI projects.

The division employs a total of 37 full time equivalent employees. In the year ended 31 December 2006, Project Investments generated profit of £5.5 million before interest, tax and intangible amortisation and exceptional items. Gross assets at 31 December 2006 were £72 million.

LST chief executive Ian Ellis said: "Project Investments offers an excellent fit with the existing LST business and reinforces our presence in the community infrastructure market. It brings us a top quality portfolio of assets and a high calibre team of people who have a long and successful track record in bidding major PFI/PPP projects."