The announcement today brings the Group's recent sales total to £64m in an effort to shore up its Balance Sheet.
Companies: Carillion plc
Troubled construction support services Group Carillion (LON: CLLN) has announced the sale of its stake in a property development company for £13.8m, in an effort to shore up its Balance Sheet.
The 67% controlling interest in Ask Real Estate Limited (AREL) and 50% stake in Ask Carillion Developments (ACD) have been sold to West-Midlands property company Dukehill.
Of the £13.8m cash sale, £1m of that is contingent on the sale of office block 100 Embankment in Manchester.
AREL and ACD operate in the north of England as commercial property developers with projects in Manchester, Leeds, and Liverpool.
The update said the funds will be used to reduce the Group's leverage.
The announcement today brings Carillion's total figure of sales to almost £64m after it announced last week it had sold its Healthcare contracts to rival Group Serco.
The Group has had a tough year in 2017 with its Interims reporting Underlying Profit down 40% on the same period last year.
Interim Chief Executive of Carillion Keith Cochrane said he was pleased the Group's plans to sell off some of its divisions was progressing:
"Much remains to be done, and we are continuing to execute our plans to refocus the business, reduce cost and strengthen our balance sheet".
The Group's share price crashed in July this year off the back of a profit warning, falling over 230% in a week's trading and has struggled to recover since. The Group trades on a forecast PE ratio of just 2x against the industry median of 9x.