The agreement begins with a five-year initial development periodthat includes the design, construction and/or renovation of the2,875 units located at Atlus Air Force Base in Atlus, OK; Luke AirForce Base in Glendale, AZ; Sheppard Air Force Base in WichitaFalls, TX; and Tyndall Air Force Base in Panama City, FL. GMH alsoassumes overall management, maintenance and operationalresponsibilities for the housing in those locations for the full 50years.

Approximately $337.1 million will be expended over the five-yearinitial development period. That funding, a spokeswoman for GMHsays, "comes from a combination of private debt, subordinated AirForce debt, private equity, interest earnings and excess cash flow.Although we begin construction and renovation immediately, not allof the funding is spent immediately, which accounts for theinterest earnings.

"Our earnings come from property management fees, developmentfees and return on invested capital. The Air Force's basicallowance for housing to military residents goes back into theproject over the term of the agreement. Throughout the 50-yearterm, we are constantly renovating and replacing the housing aswell as the roads, community centers and other amenities, in thesame way a private multihousing complex would be maintained andoperated.