GMH Military Housing Becomes Balfour Beatty Communities

NEWTON SQUARE, Pa., April 30  /PRNewswire/ -- GMH Military Housing, the former military housing division of GMH Communities Trust (NYSE:GCT), announced today that it has been successfully acquired by Balfour Beatty plc, a UK-based international engineering, construction, investment and services group, for an aggregate purchase price of $350.5 million.  The military housing business will now be managed under the name Balfour Beatty Communities, and will continue its focus as a leading provider of housing for members of the U.S. military and their families throughout the United States. The entire executive management team, as well as existing corporate and project level military housing employees, will remain part of the new company and will work toward creating a seamless transition of the operating structure going forward.

Balfour Beatty Communities currently maintains interests, primarily through joint ventures with the Department of Defense, in 12 military housing projects on 37 military bases (representing approximately 25,700 end-state housing units) having an aggregate development value of approximately $3.0 billion, including one unaccompanied personnel housing project. In addition, the company is in exclusive negotiations for four additional projects on six military bases (representing approximately 6,000 end-state housing units) that are expected to close during the second and third quarters of 2008, as well as one unaccompanied personnel housing project expected to close in the second half of 2008.

The acquisition of the military housing business by Balfour Beatty significantly expands its already extensive presence in the defense sector. Among other development projects within the U.S., Balfour Beatty currently is involved in building the 9/11 Memorial at the Pentagon and provides master planning, engineering, design and design/build services for the U.S. Army Corps of Engineers and the Department of Veterans Affairs for healthcare facilities in the U.S., Puerto Rico and Germany.  Balfour Beatty Group also has performed construction work on the U.S. Capitol Visitor Center, multiple National Archives and Records Administration facilities, project management of border stations for the General Services Administration (GSA) in Arizona and Washington, and project management for the GSA for several Federal Bureau of Investigation buildings.

Bruce Robinson, President and Chief Executive Officer of Balfour Beatty Communities stated, "We are extremely excited to become part of the Balfour Beatty family of companies. We enter into this new phase of our business with tremendous momentum, as we are currently finalizing agreements for several new privatization projects. Our management team and employee base remains unchanged, and is clearly focused on our core strengths of providing high quality housing communities to U.S. military members and their families.  We look forward to a rewarding future and further growth of our business through the pursuit of additional defense sector privatization projects, as well as other opportunities within the public-private partnership (PPP) arena."

Also commenting on the acquisition today, Balfour Beatty plc Chief Executive, Ian Tyler, said, "Balfour Beatty Communities will be central to implementing our U.S. strategy of building a high-quality, domestic U.S. business similar to our very successful UK model. It adds a major, high- quality PPP business to our U.S. group in one of our key target market sectors. GMH will be an excellent springboard into other emerging PPP and support service sectors in the U.S. market, will immediately enhance earnings and generate significant value for our shareholders.

"The military accommodation market is firmly established and is based on strong, long-term relationships between service providers and the U.S. military. We attach great importance to the skills and experience of the management team, who will play a key role in the further development of the business."

Balfour Beatty Communities is based in Newtown Square, PA and employs approximately 1,000 employees nationwide.

Balfour Beatty Communities, LLC (http://www.bbcgrp.com/) operates 12 military housing privatization projects covering family housing at 37 military bases, including one unaccompanied personnel project; and is in exclusive negotiations relating to four additional family housing projects representing an additional six military bases as well as one unaccompanied personnel housing project. The Company previously has partnered with The Department of the Army for the military family housing privatization projects at Fort Stewart, Hinesville, Georgia and Hunter Army Airfield, Savannah, Georgia; Walter Reed Army Medical Center, Washington, DC and 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; and Fort Bliss, El Paso, Texas and the White Sands Missile Range, Las Cruces, New Mexico. The Company has partnered with the Department of the Navy for its Navy Northeast Region Project, covering eight 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. The company has also partnered with the Department of the Air Force for the Air Education and Training Command (AETC) Group 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; and Tyndall Air Force Base, Panama City, Florida as well as Vandenberg Air Force Base, Lompoc, California.  Balfour Beatty Communities is also partnered with the Department of the Army for the privatization of Unaccompanied Officer Quarters/Unaccompanied Senior Enlisted Quarters at Fort Stewart, Hinesville, GA.

About Balfour Beatty Communities (http://www.bbcgrp.com/)

Balfour Beatty Communities, LLC (formerly known as GMH Military Housing) is responsible for the development, renovation, operation and management of military privatization housing projects for the U.S. Departments of the Army, Navy and Air Force.  The company has been a leader in the military housing industry, and provides services to members of the U.S. military and their families residing on or near bases located in 20 states across the country. Currently based in Newtown Square, PA, the company employs approximately 1,000 people nationwide. 

DATASOURCE: GMH



CONTACT:  Kathleen M. Grim, Balfour Beatty Communities, [phone],

; or Greg Matusky, [phone], or General Media Contact,

Katie Miller, [phone] or [phone], both of Gregory FCA



Web site:  http://www.bbcgrp.com/ 

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