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The LEP was established in 2008 to provide 34 secondary schools in Kent to be delivered through three phases of construction, both through the traditional design and build process as well as through the Private Finance Initiative (PFI).
Kier was already in place as the principal construction supply chain partner of the LEP and is active on the first phase of schools which are in construction. Kier will now assume the role of manager of the LEP as well as co-owner alongside Kent County Council, BSFI and Northgate Managed Services (the ICT provider).
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The investment purchased represents Trillium's 64% stake in the Kent LEP and includes a 71.8% interest in the PFI projects. The consideration for the purchase was £4.2m, of which £2.0m is conditional upon the funding being approved for the second phase of schools.
The first phase of schools includes an existing PFI project with an equity stake of £6.7m to which Kier is now committed. Kier with Northgate and its construction partners will immediately commence work on proposals for the £249m second phase projects which will commence during 2010 and includes an £80m PFI project. The third phase will then commence in 2011. In addition, Kier Facilities Services will carry out the Facilities Management services for the PFI schools.
Kier Group Chief Executive, John Dodds, said: "We are delighted with this acquisition as it clearly demonstrates not only Kier’s commitment to providing a broad range of construction and support services to the education sector, but also the unique capabilities of our Group to invest in the long term development of the schools’ infrastructure. We look forward to expanding our already close working relationship with Kent County Council, our other co-owners, the schools involved and our full range of supply chain partners in the region."
(CD/GK)
