Balfour Beatty Communities Selected as Highest Ranked Offeror by the Air Force for Northern Group Housing Privatization Project

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November 07, 2011

Project Covers Six Air Force Bases and Estimated 4,761 End-State Units

NEWTOWN SQUARE, PA --- November 7, 2011 --- Balfour Beatty Communities, LLC (BBC), a subsidiary of Balfour Beatty Capital Group, Inc. and one of the leading Public-Private Partnership (PPP or P3) providers of housing, lifestyle and community solutions for members of the U.S. military and their families, is pleased to announce that it has been selected by the Department of the Air Force as the highest ranked offeror (HRO) for the privatization of family housing under the Northern Group Housing Privatization Project. The project includes six Air Force bases, including Minot AFB, Grand Forks AFB and Cavalier AFS, each located in North Dakota; Ellsworth AFB, located in South Dakota; Mountain Home AFB, located in Idaho; and Cannon AFB, located in New Mexico.

As a result of the HRO selection, BBC and its partners will participate in exclusive negotiations with the Department of the Air Force for the development, management, construction and renovation of high-quality homes and other ancillary facilities and amenities to meet the community housing needs at each of the six bases. The 50-year project is expected to have a six-year initial development period (IDP), with estimated project costs valued at approximately $470.0 million and covering an estimated 4,761 end-state housing units. BBC's partners include Balfour Beatty Construction, which will provide new construction services, and Niles Bolton Associates and Woolpert, which will provide architecture and engineering services, respectively.

"We are extremely honored to have been chosen as the HRO for the Northern Group project and look forward to expanding our ongoing commitment to improving Air Force family housing. This opportunity allows us to broaden our geographic presence throughout the United States., increasing our military housing footprint to 53 military installations within 25 states and Washington, D.C.," commented Chris Williams, President of Balfour Beatty Communities, LLC. "Balfour Beatty Communities is very proud of our military members and their families and the sacrifices they make each and every day for our country.”

“Our commitment to excellence is unwavering and we have dedicated ourselves to providing high-quality housing and first-class resident services. To the Airmen and their families at Cavalier AFS, Minot, Grand Forks, Ellsworth, Mountain Home and Cannon Air Force bases, we are proud to serve you," commented Chris Williams.

Congressionally authorized since 1996, the Military Housing Privatization Initiative allows the Department of Defense and the Department of the Air Force 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.

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