Lendlease Closes on $1.1 Billion in Financing for Improvements Across its Army Housing Portfolio, Announces Specific Plans for Five Installations

20 Apr 2021

Lendlease, in partnership with the United States Army, today announced that it has closed on $1.1 billion in financing that will allow it to execute on improvement plans for privatized military housing communities located at five Army installations over the next five years. As part of the approved scope of work, approximately 12,000 existing homes will be renovated and approximately 1,200 new homes will be constructed.

Lendlease, in partnership with the United States Army, today announced that it has closed on  $1.1 billion in financing that will allow it to execute on improvement plans for privatized military housing communities located at five Army installations over the next five years. As part of the approved scope of work, approximately 12,000 existing homes will be renovated and approximately 1,200 new homes will be constructed.

The $1.1 billion financing was provided by client accounts of Guggenheim Investments.

“With this $1.1 billion private capital investment, Lendlease is proud to begin work across our Army housing portfolio, bringing new homes and improvements to our communities and ensuring homes fully meet the needs of today’s military service members and their families,” said Denis Hickey, CEO, Lendlease Americas. “Privatization has allowed us to expedite our plans and we look forward to the continued progress we’ll make over the next five years.” 

Approved work is set to begin this year and will include the following:

Campbell Crossing (Fort Campbell, Ky.): Approximately $235M invested in the demolition of 430 homes; the construction of more than 530 new JNCO homes; minor renovations at nearly 500 homes; and nearly 140 roof replacements. 

Fort Drum Mountain Community Homes (Fort Drum, N.Y.): Approximately $45M invested in minor renovations at more than 700 homes; installation of more than 650 new HVAC systems; and conducting siding and roof repairs on more than 300 homes. 

Fort Hood Family Housing (Fort Hood, Texas): Approximately $420M invested in the demolition of and subsequent new construction of nearly 600 new JNCO homes; roof replacements on more than 2,300 homes; and medium renovations at more than 1,300 homes.

Knox Hills (Fort Knox, Ky.): Approximately $80M invested in the construction of more than 60 new homes; installation of more than 740 new HVAC systems; and minor renovations at more than 570 homes. 

Island Palm Communities (Schofield Barracks, Wheeler Army Airfield, Hawaii): Approximately $30M invested in minor renovations at more than 620 homes; more than 160 roof replacements; and the construction of four new playgrounds.

“In recent years, Lendlease has invested hundreds of millions of dollars for improvements across our MHPI portfolio. Today’s announcement is further evidence of our ongoing commitment to provide quality homes and community resources to our military service members,” said Phillip Carpenter, Chief Operating Officer, Lendlease Communities. “We continue to work closely alongside Army stakeholders and our current residents to implement improvements that best suit the needs of today’s military families.” 

The U.S. Army announced approval of the negotiated terms for the development plan in a release Jan. 27.

“Under the guidance of Army senior leaders to ensure readiness of our force and quality of life for Soldiers and their families, we have reached an extraordinary milestone with Lendlease,” said Gen. Ed Daly, commander of Army Materiel Command. “This additional investment will go a long way in improving the quality of homes for Soldiers and their families.”

The planned projects represent a continuation of Lendlease’s commitment to provide the best homes and communities for military families now and into the future. The anticipated scope acceleration resulting from this announcement is in addition to the more than $600 million in out year development work currently underway across the company’s Army and Air Force housing portfolio. 

“Guggenheim Investments has long supported our nation’s military service members through the Department of Defense’s Military Housing Privatization Initiative,” said Scott Minerd, Chairman of Investments and Global Chief Investment Officer of Guggenheim Partners. “With this transaction, we advance our commitment to provide financing for the military on behalf of our clients, and look forward to future opportunities to support the Defense Department’s privatization initiative.”  

Learn more about Lendlease’s Communities business here. 

ENDS

For additional information, contact:
Bristol Rice
Inkhouse on behalf of Lendlease
[email protected] 


About Lendlease
Lendlease is a leading global real estate group with operations in Australia, Asia, Europe and the Americas. Our purpose is to create value through places where communities thrive.

Headquartered in Sydney, Australia, and listed on the Australian Securities Exchange, Lendlease has approximately 9,500 employees internationally. 

Our core capabilities are reflected in our operating segments of Development, Construction and Investments. The combination of these three segments provides us with a sustainable competitive advantage and allows us to provide innovative integrated solutions for our customers.

In the US, Lendlease’s Communities business is one of the nation’s leaders in public/private community development. We manage one of the largest military housing portfolios in the US and are the Army's exclusive partner for lodging. With a focus on creating sustainable value, Lendlease creates communities that regenerate our environment, enrich people’s lives and foster economic growth. Lendlease has worked extensively with the Department of Defense through the Military Housing Privatization Initiative (MHPI), a program that provides for the transfer of military housing assets to private sector companies. With over 40,000 residential units, 192 apartments and more than 12,000 hotel rooms in its portfolio, Lendlease will finance, develop, build, renovate and operate these sites for at least 50 years.