Real Estate Central

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.



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Source: Real Estate Newswire