FORT KNOX, Ky. — In partnership with the U.S. Army, Lendlease announced April 21 it has closed on $1.1 billion in improvement financing for privatized military housing communities located at Fort Knox and four other Army installations.
The $1.1 billion in committed funding from client accounts of Guggenheim Investments allows the housing management company to execute the improvements over the next five years. Officials said the Lendlease—Army partnership will also expedite planned improvements in the accelerated out-year development program by several years to come.
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 at the five locations combined.
“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 approximately $80M invested in the construction of more than 60 new homes at Fort Knox, as well as installation of more than 740 new HVAC systems and minor renovations to more than 570 homes. The $1.1 billion investment includes $235 million at Fort Campbell, Kentucky, $45 million at Fort Drum, New York, $420 million at Fort Hood, Texas, and $30 million at Schofield Barracks and Wheeler Army Airfield in Hawaii.
“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.”