Press Release

Balfour Beatty selected by the US Department of the Air Force for the Western Group Housing privatisation project

15 February 2011


Balfour Beatty, the international infrastructure Group, announces today that Balfour Beatty Communities has been selected by the US Department of the Air Force as the “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 allows Balfour Beatty Communities to participate in exclusive negotiations with the US Department of the Air Force for the development, management, construction and renovation ofhigh-quality homes and other ancillary facilities and amenities to meet the community housing needs at each of the four bases.

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 project is expected to have a 50-year term, commencing with a five-yearinitial 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.

Commenting today on the appointment, Balfour Beatty Chief Executive, Ian Tyler, 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 ofhigh-quality concessions.”

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.

The Western Group Housing privatisation project will bring Balfour Beatty Communities’ PPP military portfolio to 18 family housing projects, with one unaccompanied personnel project.


Analyst/investor enquiries:
Basak Kotler
Balfour Beatty plc
Tel 020 7216 6924

Media enquiries:
Duncan Murray
Balfour Beatty plc
Tel 020 7216 6865

Notes to editors:

  1. Balfour Beatty Communities, a subsidiary of Balfour Beatty Capital Group, Inc. located in the US, is responsible for the development, renovation, operation and management of military privatisation housing projects for the US Departments of the Army, Navy and Air Force. It is a leader in the military housing industry, and provides services to members of the US military and their families residing on or near installations located in 22 states and Washington, DC. Balfour Beatty Communities employs approximately 1,000 people nationwide.

  2. Balfour Beatty Communities is partner with the Department of the Air Force for the military family housing privatisation projects for Vandenberg Air Force Base, Lompoc, California, Lackland Air Force Base, San Antonio, Texas and the Air Education and Training Command (AETC) Group I Project consisting of four Air Force bases located at:

    • Altus Air Force Base, Altus Oklahoma
    • Luke Air Force Base, Glendale, Arizona
    • Sheppard Air Force Base, Wichita Falls, Texas
    • Tyndall Air Force Base, Panama City, Florida

    as well as the Air Mobility Command (AMC) West Group Project which consists of three Air Force bases located at:

    • Fairchild Air Force Base, Spokane Washington
    • Travis Air Force Base, Fairfield, California
    • Tinker Air Force Base, Oklahoma City, Oklahoma
  3. Balfour Beatty Communities is also partner to The Department of the Army for the following military family housing privatisation projects at:

    • Fort Stewart, Hinesville, Georgia and Hunter Army Airfield, Savannah, Georgia
    • Walter Reed Army Medical Center, Washington, DC & Fort Detrick, Frederick, Maryland
    • Fort Hamilton, Brooklyn, New York
    • Fort Carson, Colorado Springs, Colorado
    • Fort Gordon, Augusta, Georgia
    • Carlisle Barracks, Carlisle, Pennsylvania and Picatinny Arsenal, Dover, New Jersey
    • Fort Eustis, Newport News, Virginia and Fort Story, Virginia Beach, Virginia
    • Fort Bliss, El Paso, Texas and White Sands Missile Range, Las Cruces, New Mexico
    • Fort Leonard Wood, Pulaski County, Missouri
    • United States Military Academy at West Point, Orange County, New York
    • Fort Jackson, Columbia, South Carolina
  4. Balfour Beatty Communities has also partnered with the Department of the Army for the privatisation of Unaccompanied Officer Quarters/Unaccompanied Senior Enlisted Quarters at Fort Stewart, Hinesville, GA.

  5. Balfour Beatty Communities is partner with the Department of the Navy for its Navy Northeast Region Project, covering seven 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.

  6. Balfour Beatty is a world-class infrastructure group with capabilities in professional services, construction services, support services and infrastructure investments.

    We work in partnership with our customers principally in the UK, continental Europe, the US, South-East Asia, Australia and the Middle East, who value the highest levels of quality, safety and technical expertise.

    Key infrastructure markets include transportation (roads, rail and airports); social infrastructure (education, specialist healthcare, and various types of accommodation); utilities (water, gas and power transmission and generation) and commercial (offices, leisure and retail).

    The Group delivers services essential to the development, creation and care of these infrastructure assets including project design, financing and management, engineering and construction, and facilities management services.

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