Balfour Beatty, the international engineering, construction, services and investment group, has announced that Balfour Beatty Communities, its US PPP concession subsidiary, has acquired the interests in both Phases I and II of the 50-year military housing privatisation project at Lackland Air Force Base, located in San Antonio, Texas.

Phase I of the project consists of 420 housing units, completed in 2000 by a prior developer; Phase II of the project will cover the design, development, construction/renovation and management of an additional 363 end-state family housing units over a five-year period at an approximate cost of $142 million.

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Construction of Phase II will be undertaken by Balfour Beatty Construction US, which undertakes the majority of Balfour Beatty Communities' construction work. Balfour Beatty Communities has also taken over property management and operational responsibilities for Phase I of the project.

Balfour Beatty Communities completed the acquisition through the purchase of the membership interests in the project company Lackland Family Housing, LLC, an entity previously owned by Realm Holdings, Inc. Balfour Beatty Communities paid $4.5 million to Realm Holdings to acquire the membership interests in the project company.

Balfour Beatty Chief Executive Ian Tyler said: "This latest addition to our portfolio of high-quality concessions is further confirmation of our leading position in the US PPP military accommodation market. We are excited about this opportunity to increase our portfolio and to continue to generate operational growth."

(CD/JM)