By Jamie Hailstone Support services giant Serco has confirmed it is planning to sell some of its PFI assets. Reports in the financial press last week claimed the company was in talks to sell seven of its 11 PFI schemes. In a statement, the company said: ‘Serco confirms that it has held discussions with potential investors regarding the possible sale of its investments in some of its PFIs. ‘In the event of any sale, Serco would retain management of the PFI projects, and the associated long-term service contracts. The conclusion of any transaction is dependent on a number of factors, and there is no certainty that any transaction will be agreed.’ It is thought the sale could include the company’s equity in a military training college. The joint venture fund I2 is reported to be interested in buying the schemes. Serco has contracts with a number of councils, including Southwark LBC, Woking BC and Canterbury City Council. In March, it won a contract worth up to £70m with Welwyn Hatfield DC to supply streetscene services. Its landscaping and street-cleaning services for Woking BC were praised in June by the-then director general of the CBI, Sir Digby Jones, as an example of smart procurement. The company announced at the end of June that it had won contracts worth £1bn in the first six months of the year, and had been appointed preferred bidder for projects worth a total of £1.5bn. Significant new contracts included a deal to run an Australian prison and provide support services for the NHS Forth Valley Acute Hospital. j.hailstone@hgluk.com
