Jarvis passes university challenge

TROUBLED support services group Jarvis has struck a deal to sell-off its university accommodation division in a further drastic step to eat into its sprawling £230m debt.

Jarvis, which put up the For Sale sign over chunks of its business in July, has agreed terms with a 3i and Barclays Private Equity joint venture.

Thousands of rooms have been built by the group's university arm since the late 1990s, but it is expected to fetch as little as £5m.

Jarvis also confirmed it had sold its stake in Estonian Railways and had already received the £6.7m.

A specialist in Private Finance Initiative (PFI) work, Jarvis has been in crisis since breaching its banking terms earlier this year.

It has already said it intends to sell its stake in London Underground consortium Tubelines.

Acting finance director Alistair Rae has been made executive finance director and will be paid about £200,000 a year.

Chief executive Kevin Hyde said: 'Alistair has undertaken the responsibilities at the most difficult time, and has guided us through a complex situation. He is a crucial figure in the recovery process.'