UK building and civil engineering contractor Kier Group plc has disposed of its 50 per cent Private Finance Initiative (PFI) investment in Hairmyres Hospital, which it sold to Innisfree M &G PPP Fund for £13.8 million cash.

The East Kilbride hospital was one of Kier’s first investments in a PFI project, which achieved financial close in March 1998. Innisfree has been Kier’s investment partner throughout the project and as a result of this transaction now holds 100 per cent of the investment. The transaction will result in the disclosure of a profit, of around £16 million in the second half of Kier’s financial year.

The construction, development and service group, specialises in building and civil engineering, support services, private house building, property development and the PFI. The group employs more than 9,000 people worldwide and generates annual revenue in excess of £2.1 billion.