Balfour Beatty secures new student accommodation project in US

25 September 2013 (Last Updated September 25th, 2013 18:30)

UK-based Balfour Beatty has secured a contract to construct a £125m student accommodation project for the Texas A&M University System in the US.

UK-based Balfour Beatty has secured a contract to construct a £125m student accommodation project for the Texas A&M University System in the US.

Under the deal, Balfour Beatty’s Campus Solutions subsidiary and its US construction business will build the project at the university’s main campus in College Station, Texas.

The proposed development will include around 4,000 beds featuring both apartment and traditional residence hall designs.

Plans also include a community support building, which will house dining services and other amenities for the university’s west campus population.

The project will be developed through a public-private partnership on a long-term ground lease that will be managed by Texas A&M University Housing and Residence Life.

The new development, which is Balfour Beatty’s sixth student accommodation project in the US, follows the recently secured University of West Florida contract, worth $500m.

Balfour Beatty CEO Andrew McNaughton said the ongoing development at Tarleton State University is on track to open in August of 2014.

"We have identified student accommodation as a key growth area for us and we are excited about the opportunities in this growing market, both in the UK and US," McNaughton said.

Balfour Beatty has already closed five student accommodation projects in the US and has two more in the preferred bidder stage.

The company said student accommodation is a growing sector with around $1bn of new projects coming to market in the US and a pipeline of about £1bn of new projects expected in the UK.