RNS Number : 7559Z
Balfour Beatty PLC
24 July 2008
24 July 2008
BALFOUR BEATTY AWARDED $410 MILLION AMC WEST HOUSING PRIVATISATION PROJECT BY US
DEPARTMENT OF THE AIR FORCE
Balfour Beatty, the international engineering, construction services and investment Group,
announces today that Balfour Beatty
Communities, its US PPP concession arm, has finalised agreements with the Department of the
Air Force to be the private sector partner for
the Air Mobility Command (AMC) West Military Housing Privatisation Project, covering three Air
Force bases, including Fairchild Air Force
Base, located near Spokane, Washington; Travis Air Force Base, located near Fairfield,
California; and Tinker Air Force Base located near
Oklahoma City, Oklahoma.
The project has a 50-year term, commencing with a seven-year Initial Development Period
and an estimated value in excess of $410
million, including the design, construction and/or renovation of, and overall management,
maintenance and operational responsibilities for,
a total of 2,435 end-state housing units. Construction will be undertaken by Balfour Beatty
Construction US, which is executing all Balfour
Beatty Communities' construction work in a programme which stretches to 2015.
Commenting today on the award, Balfour Beatty Chief Executive Ian Tyler said:
"Finalising agreement for this project is a further milestone in confirming Balfour
Beatty's leading position in the US PPP Military
accommodation market. Balfour Beatty Communities', which we acquired earlier this year, has
given us a secure long-term profit and cash flow
from a portfolio of high quality concessions. It has also brought an experienced and
successful management team to develop our presence in
the developing US PPP market and has also added a strong support service capability to the US
business mix."
Bruce Robinson, CEO and President of Balfour Beatty Communities commented:
"We are grateful for the efforts of the Air Force and our development and financing
partners in reaching final agreement, and we look
forward to providing high quality homes and programmes for the families at Fairchild, Travis
and Tinker Air Force Bases."
Congressionally authorised since 1996, the Military Housing Privatisation Initiative
allows the US Department of Defense, and the
Services, to work with the private sector to upgrade the quality of family housing and operate
and maintain that housing. The family housing
assets are typically leveraged with private investment to accomplish housing construction and
renovation goals faster and at a lower cost
than military construction.
Including the AMC West Housing Privatisation Project, Balfour Beatty Communities, LLC
(www.bbcgrp.com) operates 14 military housing
privatisation projects covering family housing at 41 military bases, including one
unaccompanied personnel project; and is in exclusive
negotiations relating to two additional family housing projects covering an additional two
military bases, as well as one unaccompanied
personnel housing project.
Earlier this month, Balfour Beatty Communities acquired the interest previously held by
American Eagle Communities in the US Army's Fort
Leonard Wood Military Housing Privatisation project in Pulaski, Missouri, for a consideration
of $3.25 million and also assumed
responsibility for property management, construction and renovation of the project. The terms
of the project were restructured as part of
the purchase in the 50-year concession which runs to 2054.
-ENDS-
Enquiries to:
Tim Sharp
Tel: +44 (0)20 7216 6884
Notes to Editors:
1. Balfour Beatty Communities, LLC (formerly known as GMH Military Housing) is
responsible for
the development, renovation, operation and management of military privatisation
housing projects
for the US Departments of the Army, Navy and Air Force. The Company is a leader
in the military
housing industry, and provides services to members of the US military and their
families residing on
or near bases located in 19 states and Washington, DC. The Company employs
approximately
1,000 people nationwide.
2. The Company is partner to The Department of the Army for the military family
housing privatisation
projects at:
- Fort Stewart, Hinesville, Georgia and Hunter Army Airfield, Savannah, Georgia
- Walter Reed Army Medical Center, Washington, DC and Fort
Detrick, Frederick, Maryland
- Fort Hamilton, Brooklyn, New York
- Fort Carson, Colorado Springs, Colorado
- Fort Gordon, Augusta, Georgia
- Carlisle Barracks, Carlisle, Pennsylvania and Picatinny Arsenal, Dover, New
Jersey
- Fort Eustis, Newport News, Virginia and Fort Story, Virginia Beach, Virginia
- Fort Bliss, El Paso, Texas and White Sands Missile Range, Las Cruces, New
Mexico
- Fort Leonard Wood, Pulaski County, Missouri
The Company is partner with the Department of the Navy for its Navy Northeast Region
Project, covering eight Naval bases in Maine,
Rhode Island, Connecticut, New York and New Jersey, as well as the Navy Southeast Region
Project covering 11 Naval bases in South Carolina,
Florida, Georgia, Mississippi and Texas.
The Company has also partnered with the Department of the Air Force for
Vandenberg Air Force
Base, Lompoc, California and the Air Education and Training Command (AETC)
Group I Project
consisting of four Air Force bases located at:
- Altus Air Force Base, Altus Oklahoma
- Luke Air Force Base, Glendale, Arizona
- Sheppard Air Force Base, Wichita Falls, Texas
-Tyndall Air Force Base, Panama City, Florida
3. Balfour Beatty Communities has partnered with the Department of the Army for
the privatisation
of Unaccompanied Officer Quarters/Unaccompanied Senior Enlisted Quarters
at Fort Stewart, Hinesville, GA.
4. Balfour Beatty is a world-class engineering, construction, services and
investment business, well-
positioned in infrastructure markets which offer significant long-term growth.We work in
partnership with sophisticated customers who value the highest levels of
quality, safety and
technical expertise. Our skills are applied in appropriate combinations to meet
individual customer
needs.
This information is provided by RNS
The company news service from the London Stock Exchange
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