Balfour Beatty : disposal from investments portfolio

News Release

01 July 2016

BALFOUR BEATTY MAKES A DISPOSAL FROM THE INVESTMENTS PORTFOLIO

Balfour Beatty plc ('Balfour Beatty'), the international infrastructure group, today announces it has exited in full from Balfour Beatty Infrastructure Partners LLP ('BBIP'). In addition, Balfour Beatty has disposed of its entire interest in Balfour Beatty Infrastructure Partners LP (the 'Fund'), which is the infrastructure fund advised by BBIP, to entities controlled by the investment management firm Wafra Investment Advisory Group, Inc. ('Wafra').

BBIP was set up in November 2010 as an independently managed infrastructure management business focusing on secondary opportunities and is run at arm's length to Balfour Beatty's Investments portfolio.

The sale of the Fund interest to Wafra is for an initial cash consideration of $64.4m, payable on signing, and the disposal includes a proportion of the rights to participate in the carried interest generated by the current fund. Balfour Beatty also has the right to receive further cash consideration, depending on further fundraising by BBIP after the sale, in addition to the proportion of the carried interest retained by Balfour Beatty.

The proceeds of the transaction will be retained within the Balfour Beatty Group.

Leo Quinn, Chief Executive Balfour Beatty said:

'Our exit from BBIP and sale of the Fund interest further simplifies the Group and maintains our existing balance sheet strength.

'Exiting the infrastructure fund management market will allow our core infrastructure investments business to focus entirely on its highly successful primary investments portfolio which also offers further downstream opportunities for the Balfour Beatty Group'.

ENDS

Analyst/investor enquiries:

Peter Young
Tel. +44 (0)20 7216 6824
peter.h.young@balfourbeatty.com

Media enquiries:

Louise McCulloch
Tel. +44 (0)20 7963 2150
louise.mcculloch@balfourbeatty.com

Notes:

1. Summary financial information relating to the BBIP business being transferred as included in the Balfour Beatty Group's accounts for the year ended 31 December 2015 is as follows:

2. Rob Gregor, Steven Lowry and Jeff Neil are the BBIP management team

3. In relation to the carried interest, Balfour Beatty has retained the right to 10 per cent. of the amounts of carried interest in relation to the Fund until it has received $4.6 million and thereafter Balfour Beatty has retained the right to 40 per cent.

4. Balfour Beatty (www.balfourbeatty.com) is a leading international infrastructure group. With 34,000 employees, we provide innovative and efficient infrastructure that underpins our daily lives, supports communities and enables economic growth. We finance, develop, build and maintain complex infrastructure such as transportation, power and utility systems, social and commercial buildings.

Our main geographies are the UK, US, Middle East and South East Asia. Over the last 100 years we have created iconic buildings and infrastructure all over the world including the London Olympics' Aquatic Centre, Hong Kong's first Zero Carbon building, the world's biggest shopping mall in Dubai, the National Museum of the Marine Corps in the US and the Channel Tunnel Rail Link.