Re Contract

RNS Number : 1326L

Balfour Beatty PLC

06 January 2009

 



6 January 2009

BALFOUR BEATTY COMMUNITIES ACQUIRES INTEREST 

IN MILITARY HOUSING PROJECT AT LACKLAND AFB, TEXAS

Balfour Beatty, the international engineering, construction, services and investment group, announces today that Balfour Beatty Communities, its US PPP concession subsidiary, has acquired the interests in both Phases I and II of the 50-year military housing privatisation project at Lackland Air Force Base, located in San Antonio, Texas.  

Phase I of the project consists of 420 housing units, completed in 2000 by a prior developer; Phase II of the project will cover the design, development, construction/renovation and management of an additional 363 end-state family housing units over a five-year period at an approximate cost of $142 million.

Construction of Phase II will be undertaken by Balfour Beatty Construction US, which undertakes the majority of Balfour Beatty Communities' construction work. Balfour Beatty Communities has also taken over property management and operational responsibilities for Phase I of the project.  

Balfour Beatty Communities completed the acquisition through the purchase of the membership interests in the project company Lackland Family Housing, LLC, an entity previously owned by Realm Holdings, Inc.  Balfour Beatty Communities paid $4.5 million to Realm Holdings to acquire the membership interests in the project company.

Balfour Beatty Chief Executive Ian Tyler said:

'This latest addition to our portfolio of high-quality concessions is further confirmation of our leading position in the US PPP military accommodation market.  We are excited about this opportunity to increase our portfolio and to continue to generate operational growth.'  

Bruce Robinson, President and CEO of Balfour Beatty Communities, said:

'This latest transaction adds to our successful track record of working with the military to complete financial restructurings of existing projects.  Having implemented a seamless transition for residents of Phase I of the Lackland project, we look forward to continuing to improve the quality of life for Airmen and their families with the commencement of Phase II of the project.'

Including the Lackland AFB Housing Privatisation Project, Balfour Beatty Communities operates 17 military housing privatisation projects covering family housing at 44 military bases and one unaccompanied personnel project, and is in exclusive negotiations relating to one other unaccompanied personnel housing project.  

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 traditional military construction. 

ENDS

Analyst/media enquiries:

Duncan Murray

Balfour Beatty plc

020 7216 6865

www.balfourbeatty.com

Notes to Editors:

1.	Balfour Beatty Communities, LLC 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 20 states and Washington, DC. The Company employs approximately 1,000 people nationwide.
2.	In addition to Lackland, Balfour Beatty Communities also owns interests in Air Force family housing privatisation projects at:  Vandenberg Air Force Base, Lompoc, California;  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.
3.	Additionally, the Company has 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. It has partnered with The Department of the Army for 11 military family housing privatisation projects at installations in Georgia, Washington, DC, Maryland, New York, Colorado, Pennsylvania, New Jersey, Virginia, Texas, New Mexico, Missouri, New York and South Carolina.   The Company also owns interests in the privatisation project for Unaccompanied Officer Quarters/ Unaccompanied Senior Enlisted Quarters at the Army's 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.

 

END

 

 

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