Balfour Beatty has reached financial close for phase one of the Texas A&M University student accommodation project valued at £62 million (US$104 million).The project was 100% financed through the sale of tax-exempt bonds. The underwriter was Royal Bank of Canada (RBC). Balfour Beatty did not make an investment.
This is the first of a two phase project with an estimated combined value of £119 million (US$200 million). Phase one of the development at College Station, Texas, will feature 1,274 beds configured in apartment designs, as well as community areas and other amenities for the University's undergraduate population. Construction will commence immediately, with the first students expected to move in during August 2015.
Negotiations on the second phase are expected to be concluded later this year.
The whole project will incorporate approximately 4,000 beds featuring both apartment and traditional residence hall designs. Also included in the plan is a community support building that will house dining services and other amenities for the university's west campus population.
Texas A&M University is the sixth largest university in the US. One of the key sustainable elements which Balfour Beatty will deliver on this project includes a sophisticated building control system which will allow the University to remotely monitor and adjust temperature within each room to ensure maximum energy efficiency.
Steve Marshall, Balfour Beatty Executive Chairman stated:
There is an increasing number of development opportunities in the US student accommodation market where we are developing a leading position, and we are delighted to be at the forefront of this growth. Our ability to combine expertise across finance, development and construction is proving attractive to clients and this project is another great example. We look forward to continuing our partnership with Texas A&M University to deliver this significant project.