OAHU, HAWAII-Actus Lend Lease has been selected by the US Army to renovate, replace and privatize thousands of military housing units on Oahu as part of the Department of Defense’s largest ever military housing privatization project.

As part of the agreement, Actus will develop a Community Development and Management Plan based on its proposal to build over 6,449 new replacement homes, renovate 1,212 existing homes and develop 16 community centers and other community amenities in the initial 10-year development phase. The agreement includes a 50-year management assignment.

Actus CEO Peter Koziol says this assignment will be one of Actus’ largest undertakings. The 10-year development scope is valued at approximately $1.8 billion; total revenue expected over the 50-year term of the project is $5 billion. The Army is expected to make final contract award sometime in November 2004. A signing ceremony is tentatively scheduled for this September in Hawaii.

Actus’ Executive VP Tom Swain tells GlobeSt.com the assignment includes development of multifamily housing as well as single-family homes. Actus income will be derived from development fees, maintenance fees and management fees, all of which are performance based. “We’re putting half of our fee at risk,” says Swain.

The Army’s so-called Residential Communities Initiative will include Fort Shafter, Tripler Army Medical Center, Aliamanu Military Reservation (including 100 units for the U.S. Marine Corps), Schofield Barracks, Wheeler Army Airfield, Helemano Military Reservation and the Coast Guard’s Kia’i Kai Hale, all of which are located on the island of Oahu.

Actus has built over 1,200 military family homes on Oahu and is currently building additional homes at Hickam Air Force Base and Bellows Air Force Station, and at Ford Island, Pearl Harbour. Based on Actus’ current performance, approximately 65% of the development scope could be expected to go to local and small businesses during the 10-year development period of the project. In addition, approximately 35% of the projected annual revenues could be spent on the purchase of goods and services for the project.

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