Balfour Beatty Communities Acquires Interest in Military Housing Project at Lackland AFB, Texas.
NEWTOWN SQUARE, Pa. -- Balfour Beatty Communities has acquired the interests in both Phase I and Phase II of the military housing privatization 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; and Phase II of the project will cover the design, development, construction/renovation and management of an additional 363 end-state housing units. The Company completed the acquisition on December 23, 2008, through the purchase of the membership interests in Lackland Family Housing, LLC, an entity previously owned by Realm Holdings, Inc.
The project, consisting of both Phases I and II, has a term of 50-years, and includes a 5-year Initial Development Period (IDP) for Phase II with IDP costs valued at approximately $142.0 million. The Company also has taken over property management and operational responsibilities with respect to Phase I of the project.
Throughout the 50-year term of the project, the Company will earn management, construction/renovation and development fees, as well as equity returns on its invested capital.
"In today's challenging financial climate, we are pleased to continue to achieve growth in our portfolio, as well as identify additional acquisition opportunities. 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 of Airmen and their families with the commencement of Phase II," said Bruce Robinson, President and CEO of Balfour Beatty Communities.
Congressionally authorized since 1996, the Military Housing Privatization 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.
Including the Lackland AFB Housing Privatization Project, Balfour Beatty Communities, LLC (www.bbcgrp.com) operates 17 military housing privatization 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. The Company also owns interests in Air Force family housing privatization 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.
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; and has partnered with The Department of the Army for 11 military family housing privatization 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 privatization project for Unaccompanied Officer Quarters/Unaccompanied Senior Enlisted Quarters at the Army's Fort Stewart, Hinesville, GA.
About Balfour Beatty Communities (www.bbcgrp.com)
Balfour Beatty Communities, LLC is responsible for the development, renovation, operation and management of military privatization housing projects for the U.S. 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 U.S. military and their families residing on or near bases located in 20 states and Washington, DC. Currently based in Newtown Square, PA, the company employs approximately 1,000 people nationwide.
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|Date:||Jan 5, 2009|
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