WS Atkins plc has signed an agreement with Edge Orbital Holdings 2 Limited for the sale of its minority PFI investment in the UK's M25 motorway.

The sale is to Edge, a consortium arranged and advised by Macquarie Capital Limited. The consortium consist of institutional investors and the sale is for a total cash consideration of £66.3 million (US$83.7 million).

Remaining subject to various third party consents, completion of the sale is expected before the end of the current financial year.

The project comprises renovation and widening of two sections in the North East and North West quadrants of the M25 North of London. A total of 63 km are being widened from three to four lanes in each direction, much of the widening work is already done. The widening is between junctions 16 to 23 and 27 to 30. 

The project involves the design, construction, financing, operation and maintenance of the M25 motorway for30 years for the British Highways Agency. The operation and maintenance undertaking is being carried out by joint venture between Balfour Beatty, Atkins and Egis.

The project was founded through: a £700 million of commercial bank debt and a £215 million EIB guarantee, a £185 million unguaranteed EIB structured finance facility and shareholder equity of £200 million. The total project investment was £1085 million (US$1557 million).

The M25 is one of the world’s busiest motorways, also known as the London Orbital Motorway, connects the entire Greater London. Up to 200,000 vehicles per day use the most heavily trafficked sections.

As we reported in October, Skanska signed a Sale and Purchase Agreement (SPA) for its investment in the project for about US$335.3 million. The buyer, Edge Orbital Holdings Limited, was a consortium of institutional investors arranged and advised also by Macquarie Capital (Europe) Limited. It was formed by Dalmore Highway Investment Holdings, GCM Infrastructure and Equitix Orbital Holdings.