Balfour Beatty continues with its strategy of recycling the capital invested in the investment portfolio. The company has announced it has sold a 75% of the interest in the Carlisle Northern Development Route (CNDR) and a 65% in A30/A35 road to Equitix for a consideration totalling £47.5 million.

Equitix acquired the assets through the Equitix Fund II, which is now fully commited.

Balfour Beatty said that the highways sector remains a core market for the Group, and they have therefore retained strategic interests in CNDR and A30/A35 of 25% and 20%, respectively.

The proceeds from the transaction exceeded book value, generating a gain of £37.4 million on disposal.

The CNDR contract is a 30-year concession during which time Connect CNDR will be responsible for the design and construction of an 8.25km two-way single carriageway road from the M6 Junction 44 to the A595 southwest of Carlisle and the management, operation and ongoing investment in approximately 150km of other existing roads in Cumbria.

The A30/A35 project includes the construction of 31km of new highways involving the A30 Honiton to Exeter dual carriageway improvement and A35 Tolpuddle to Puddletown bypass. Works were completed in March 2000. The concession term is also 30 years.

Nick Parker, Chief Operating Officer, commented that:

"The addition of these two roads projects to Equitix's portfolio cements our presence as a leading investor in the UK Highways sector and complements the balance of Equitix Fund II's assets. As an investor, Equitix is committed to investing where the community benefits and we are pleased to be contributing to the improvement of the local economy."