Balfour Beatty Communities has been appointed by the US air force to deliver a housing privatisation project it was announced today.
The firm was selected as “highest ranked offeror” for the privatisation of family housing under the Western Group military housing privatisation project, which includes four US Air Force bases.
‘Highest ranked offeror’ is a US Air Force term which means the company can take part in exclusive negotiations about the development, management, construction and renovation of high-quality homes at each of the four bases.
The project is expected to have a 50-year term, starting with a five-year initial development period, with estimated project costs valued at approximately US$350 million and covering an estimated 3,264 end-state housing units.
Balfour Beatty Communities will invest approximately US$15 million of equity in the project. New housing construction will be undertaken by Balfour Beatty Construction US, in a programme which stretches to 2016.
Ian Tyler, Balfour Beatty chief executive said: “We are delighted to have been selected for the Western Group project and look forward to expanding our ongoing commitment to improve Air Force family housing.
“This opportunity allows us to broaden our geographic presence throughout the US, increasing our military housing footprint to 47 military installations in over 20 states. Balfour Beatty Communities continues to be a leader in the US PPP military accommodation market with a portfolio of high-quality concessions.”
The four Air Force bases included in the project are Beale AFB located near Marysville, California; F.E. Warren AFB, located near Cheyenne, Wyoming; Malmstrom AFB, located near Great Falls, Montana; and Whiteman AFB, near Knob Noster, Missouri.
The Western Group Housing privatisation project will bring Balfour Beatty Communities’ PPP military portfolio to 18 family housing projects, with one unaccompanied personnel project.