Amec announced today that it intends to sell its £1bn property development portfolio.
The property developer, construction and engineering group made the announcement as part of its ongoing strategic review of the business.
Samir Brikho, two months after taking over as chief executive, has unveiled the new strategy, which includes the sale of its built environment businesses, including its property, civil engineering and PFI projects.
The group had originally intended to spin them off into a separate listing.
The company will also return £100m to shareholders.
The company also issued a trading statement declaring that its 2006 pretax profit will likely be £15m below prior expectations due to restructuring and litigation costs, as well as project delays and low activity in the firm’s nuclear business.
Amec said its review had resulted in the decision to sell the following Built Environment businesses: Building and Civil Engineering; Building and Facilities Services; Property Developments and PPP.
In June this year Amec, which has been exiting most of its construction activities in the UK and US as part of a three-way break-up of the group, revealed millions of pounds worth of forthcoming exceptional charges.
The group, which has a £1bn portfolio and 10m sq ft under construction, has just begun work on large-scale regeneration schemes at St Paul’s Square in Liverpool and Chatham Place in Reading, and has recently been chosen as preferred bidder for projects at Pall Mall in Liverpool and at North Shore in Stockton-on-Tees.
It is also the lead developer on plans for Lewisham town centre in east London.
References: EGi News 13/12/06
