The sale is taking place in two stages. PFP has acquired an initial 50% of the issued share capital for £1.375m, which has been paid in full. PFP will take 100% ownership of Allenbuild after 10 outstanding contracts reach practical completion, which is expected to be in about 12 months’ time.
During the joint ownership period, Renew will retain the benefit of these 10 contracts and PFP will have the benefit of four new contracts and any further new work that Allenbuild subsequently wins.
Allenbuild is the new-build affordable housing part of Renew’s Specialist Building business.
In its results for the year ended 30th September 2014, Renew will account for the results of Allenbuild as a discontinued business, removing approximately £50m from the reported Specialist Building revenue. Renew will announce its preliminary annual results on Tuesday 25th November 2014.