Carillion flogs Manchester property project that provided a £300m boost

 
Oliver Gill
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Carillion was awarded a valuable Manchester contract in August by a joint venture interest (Source: Getty)

Carillion today offloaded its interest in a Manchester property group that provided the ailing firm with a big boost in August.

The firm sold its shareholdings in Ask Real Estate and Ask Carillion Developments as well as shareholder loans to Dukehill Developments for £13.8m.

Carillion said it would make a "modest profit" from its sale.

In August, Carillion shares leapt over eight per cent after it was reported Carillion had secured a £300m contract to develop the 1.74-acre hotel and office complex close to the Manchester Central convention centre and the Hilton Tower.

However, it is understood that while planning permission for the project had been granted, no contract had been signed between the two parties.

Read more: Carillion shares pop after snaring £300m confidence building contract

Today, interim chief executive Keith Cochrane said: "We are pleased to be able to announce further progress. 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 company is in the process of selling down assets as it seeks to raise cash to bolster its balance sheet.

Shares rose almost four per cent in early trades before falling back and are currently down 0.9 per cent.

Read more: Exclusive: Carillion locked in £200m Qatar FIFA World Cup contract row

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