£4.3m profit for schools stake sale

A CONSTRUCTION and facilities management company has made a £4.3 million profit from schools in Oldham and Norwich. Kier has sold its Private Finance Initiative stakes in the schools — which include Failsworth and Radclyffe — for £9.2 million.

It was awarded the PFI contract to build and manage the facilities at the schools for 25 years. The stakes were sold to a joint venture between HICL Infrastructure Company and Kajima Partnerships, making a £4.3 million profit on the original investment. Kier will continue to provide facilities services for the next 22 years at Failsworth and Radclyffe which opened in 2008. A council spokesman said that the deal would not affect the secondaries.