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Kier sells its investment in Hairmyres Hospital PFI

11/02/2008

Kier Group plc announces the disposal on 8 February 2008 of its 50% Private Finance Initiative (PFI) investment in Hairmyres Hospital to Innisfree M &G PPP Fund.

This East Kilbride hospital was one of Kier’s first investments in a PFI project, which achieved financial close in March 1998. The first patients were admitted to the hospital on 25 March 2001. Innisfree has been Kier’s investment partner throughout the project and as a result of this transaction now holds 100% of the investment.

The consideration for the shares and loan notes making up Kier Project Investments Limited’s 50% interest in Prospect Healthcare (Hairmyres) Group plc totalled £13.8m, which was received in cash. The transaction will result in the disclosure of a profit, of around £16m in the second half of Kier’s financial year. This includes profit previously deferred following a refinancing in August 2004, and represents a return of around five times our original investment.

Hairmyres Hospital is a district general hospital with a 24-hour accident and emergency department. It has 415 inpatient and day care beds. It won the Best Major Operational PFI Hospital Award in 2004.

Kier Project Investment manages Kier Group’s PFI interests, the core strength of which is its ability to bring together the diverse range of skills and resources within the Group and combine these with a financial package to deliver high quality buildings and services to meet the needs of the public sector.

Kier Group plc will be announcing its interim results, for the six months to 31 December 2007, on 27 February 2008.

For more information contact: Viv Chesterfield viv.chesterfield@kier.co.uk

Kier Project Investment
is part of the
Kier Group plc

Kier Project Investment, Tempsford Hall, Sandy, Bedfordshire SG19 2BD
01767 640111 01767 641113 paula.bell@kier.co.uk


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