Balfour Beatty wins US PPP, sells two UK stakes

UK infrastructure group Balfour Beatty has won its first US PPP contract outside the military sector – the $123m Florida Atlantic University student accommodation project. It has also sold stakes in two Scottish PPP projects for a combined £24.3m.

Balfour Beatty, a UK infrastructure group, has won its first public-private partnership in the US outside military housing – a $123 million contract for a student accommodation project.

Balfour Beatty: leaving
the army

The 30-year contract to design, build and operate student accommodation for the Florida Atlantic University will require the Balfour Beatty-led consortium to develop 1,216 beds in 375 units on the university’s main campus in Boca Raton, Florida. The accommodations should be ready for students by August 2011.

Balfour Beatty, which has won the contract together with Capstone Development and Crocker Partners, expects to inject $3.4 million in equity into the 30-year concession. Its previous PPP experience in the US consisted of an important contract with the US Departments of the Army, Navy and Air Force to manage the privatisation of military housing across 20 states.

In related news, the company announced that it has sold a 23.9 percent stake in the Edinburg Royal Infirmary PPP and its entire 50 percent interest in the Aberdeen Waste Water PPP, both Scottish projects.

Balfour Beatty said it sold the two stakes for a combined £24.3 million (€27 million; $37 million) and expects the transactions to generate a profit of £21 million. The deal should be concluded in April, following the relevant approvals.