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24 July 2008
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: 020 7216 6884
Notes to Editors:
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:
