Construction giant Balfour Beatty plc has snapped up the military Public Private Partnership (PPP) accommodation business from a US real estate investment trust for $350.5 million (£176.3 million) in cash.

Construction giant Balfour Beatty plc has snapped up the military Public Private Partnership (PPP) accommodation business from a US real estate investment trust for $350.5 million (£176.3 million) in cash.

The property purchase from GMH Communities Trust (GMH), which is immediately earnings enhancing, secures a reliable, long-term profit and cash flow from a portfolio of PPP concessions in the US and adds an experienced management team to develop Balfour Beatty’s presence in the growing US PPP market.

GMH is responsible for the development, renovation, financing, operation and management of military accommodation projects for the US forces. With rights to 15 concessions at 42 bases, the business will operate as Balfour Beatty Construction, acquired by Balfour Beatty in March 2007.

Balfour Beatty chief executive Ian Tyler says the acquisition is central to the business’ strategy of replicating the firm’s UK model in the US. “It adds a major PPP business to our US group in one of our key target market sectors,” he explains, describing GMH as a springboard into other emerging PPP and support service sectors in the US.