Balfour Beatty adds to US military housing portfolio

The UK-based developer, which has carved out a successful niche in the sector, has reached financial close on the $362m Western Group Housing Privatisation Project. The deal involves building military homes in California, Wyoming, Montana and Missouri.

Balfour Beatty, the UK-based international developer, has announced that Balfour Beatty Communities – a division of its US public-private partnership (PPP) concession arm – has reached financial close on the $362 million Western Group Housing Privatisation Project.

The 50-year project involves the design, building and renovation of 3,268 military homes at four bases in the US states of California, Wyoming, Montana and Missouri on behalf of the US Department of the Air Force.

Balfour Beatty Capital, the infrastructure investment arm of Balfour Beatty Capital Group, has made an equity investment of approximately $16.3 million in the project. Balfour Beatty Communities will be responsible for overall management and maintenance, and Balfour Beatty Construction US for the new construction elements of the project.

In a statement, Balfour Beatty chief executive Ian Tyler said the deal extended “our long relationship with the US Air Force”. Including the latest deal, Balfour Beatty Communities now manages and operates 19 military housing privatisation projects at 48 military communities in 26 US states and Washington DC.

In early November 2011 it was announced that Balfour Beatty had made the highest ranked offer for the Northern Group Housing Privatisation Project, a $470 million PPP involving military homes in New Mexico, North Dakota, South Dakota and Idaho.

Later the same month, Balfour Beatty Campus Solutions – part of Balfour Beatty Capital Group – was named preferred bidder for the $73 million ACC Group III Housing Privatisation Project, involving military housing at Dyess Air Force Base in Texas and Moody Air Force Base in Georgia.