Construction group Robertson has revealed the sale of its stake in a large portfolio of public-private partnership projects, including dozens of schools and a string of hospitals across Scotland.
The Moray-based company said the £73 million disposal of its majority shareholding in investment firm Elgin Infrastructure and wholly-owned subsidiary Robertson Capital Projects Investments came at an “important juncture” for its business.
It means Robertson’s interest in new school buildings and healthcare facilities across Dundee, Angus and throughout Scotland will be transferred to a City of London registered investment fund, which now stands to collect a sizeable share of hundreds of millions of pounds due from taxpayers over the remainder of the schemes’ 25- to 30-year contracts.
A spokesman for Robertson said the assets changing hands included stakes in school projects in Aberdeenshire, Dundee, Angus, north-east England and Hull, and healthcare projects in Edinburgh, Easter Ross, Glasgow, Midlothian, Inverness, north-east England and Tayside.
The recently-completed £100m Dundee Schools PPP project saw six new primaries and two secondaries constructed across the city, while a £50m deal with Angus Council also led to the firm building new schools in Forfar and Carnoustie. These contracts are just two among a total of 21 sold.
Under the terms of the agreements, Elgin and RCP Investments are paid an annual fee by local authorities with help from central government.
In 2007, the Dundee schools project alone was estimated to be worth almost £400m over a 30-year term.
Robertson chief executive Bill Robertson said the sale, to Cobalt Project Investments, would help strengthen his firm’s position.
“In line with its peer group, RCP has taken the opportunity to release value from its investment portfolios where sufficient appetite and attractive secondary market pricing make it beneficial to do so,” he said.
“This has allowed the business to recycle capital to reinvest in larger projects and continue its diversification into project management, consultancy and advisory services to the public sector, where it will continue to develop its strong position in the infrastructure market place.
“RCP, via these historic investments and established relationships, has been a key partner in the delivery of 63 schools with 42,000 pupils; 11 hospitals with over 1,100 primary care beds; 10 primary care resource centres and 280 homes serving the armed forces.”
Cobalt is managed by Dalmore Capital, whose partners include former director of public finance initiatives at major accountancy firm KPMG Michael Ryan, and John McDonagh, who spent five years on the PPP advisory team at ‘Big Four’ rival PwC.
Mr Ryan said the deal was good for his shareholders.
“We are pleased to have concluded this latest transaction for the Dalmore Capital Fund and its investors, which involves the purchase of shareholding interests in 21 high-quality operational phase assets throughout the UK,” the chief executive said.
“We look forward to continuing our business relationship with Robertson Capital Projects as they support the projects through the provision of ongoing management services.”
The buy-out is not expected to make any material difference to the buildings as they are used by schoolchildren and patients, and the facilities will still revert to local public-sector ownership following the end of the contract term.
Robertson also retains its maintenance and management services responsibilities at the affected sites.
The company is also a key partner in the Amber Blue consortium responsible for the construction of new public-sector projects, including the £29m rebuilding of Dundee’s Harris Academy, under the Scottish Futures Trust’s hub East Central Scotland. Contracts available under that initiative are expected to have a total value of around £500m.