Re Contract

RNS Number : 7133A

Balfour Beatty PLC

06 August 2008

 



6 August 2008

BALFOUR BEATTY COMMUNITIES AND THE US DEPARTMENT OF THE ARMY REACH FINANCIAL CLOSE FOR $206 MILLION HOUSING PRIVATISATION PROJECT AT WEST POINT, NEW YORK

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 US Department of the Army to be the private sector partner for the West Point Military Housing Privatisation Project.  

The Project has a 50-year term, commencing with an eight-year Initial Development Period (IDP) with project costs of approximately $206 million that includes the design, construction and/or renovation of, and overall management, maintenance and operational responsibilities for an estimated 824 end-state units. This includes the restoration of 416 historic homes. West Point is the Army's oldest continuously occupied military post in the United States, dating back to 1778.

Construction and renovation will be undertaken by Balfour Beatty Construction US, which is executing all of Balfour Beatty Community's construction work in a programme which extends to 2016.

Commenting on the award today, Balfour Beatty Chief Executive Ian Tyler said:

'Reaching financial close on this concession, following on from our recent success in the $410 million AMC West US Air Force project, provides further confirmation of our leading position in the US military accommodation market.  We recognise the historic role that West Point has played in the history of the United States and look forward to providing superior housing and services to the military families of West Point'.

Congressionally authorised since 1996, the Military Housing Privatisation Initiative allows the Department of Defense and 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. 

Last month, Balfour Beatty Communities reached financial close on the $410 million AMC West project for the US Department of the Air Force and acquired the interest previously held by American Eagle in the Fort Leonard Wood project of $3.25 million.

-ENDS-

Enquiries to:    

Tim Sharp

Tel: [phone]

www.balfourbeatty.com

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 has been 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 23 states and Washington, DC. Currently based in Newtown Square, PA, the company employs approximately 1,000 people nationwide.
2.	Including the West Point Housing Privatisation Project, Balfour Beatty Communities, LLC (www.bbcgrp.com) operates 16 military housing privatisation projects covering family housing at 43 military bases including one unaccompanied personnel project. The Company is partnered with 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 Fort Jackson, Columbia, South Carolina
3.	In addition, Balfour Beatty Communities partnered with the Department of the Army for the privatisation of Unaccompanied Officer Quarters/Unaccompanied Senior Enlisted Quarters at Fort Stewart, Hinesville, GA.
4.	The Company partnered 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.
5.	With the Department of the Air Force, Balfour Beatty Communities is partnered for the military housing privatisation projects at Vandenberg Air Force Base, Lompoc, California and the Air Education and Training Command (AETC) Group I Project, consisting of four Air Force bases in Oklahoma, Arizona, Texas and Florida and the Air Mobility Command (AMC West) Project, consisting of three Air Force Bases in Washington, California and Oklahoma.
6.	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.

 

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