The GEO Group Negotiating with State of Victoria to Increase Capacity at the Ravenhall Correctional Centre by 300 Beds
June 05 2019 - 6:54AM
Business Wire
The GEO Group, Inc. (NYSE:GEO) (“GEO”) announced today
that its subsidiary, The GEO Group Australia Pty Ltd (“GEO
Australia”) is currently in negotiation discussions with the State
of Victoria to increase the capacity at the Ravenhall Correctional
Centre by an additional 300 beds increasing the Centre’s capacity
to 1,600 beds. The 300-bed capacity increase is expected to
generate incremental annualized revenues of $19 million.
The Ravenhall Correctional Centre was developed by a GEO led
consortium. The $700 million project was financed under a
Public-Private Partnership structure, which included a capital
investment from GEO of approximately $90 million with returns on
investment consistent with GEO’s company-owned facilities. GEO
Australia operates the Centre, which opened in late 2017, under a
25-year contract with the State of Victoria.
George C. Zoley, Chairman of the Board and Chief Executive
Officer of GEO, said: “We appreciate the trust placed in our
company by the State of Victoria, which is a reflection of our
partnership with the State since 1999 with the opening of the
Fulham Correctional Centre. We are looking forward to working with
the Department of Justice and Community Safety to further
strengthen our longstanding partnership.”
The GEO Group, Inc. (NYSE: GEO) is the first fully integrated
equity real estate investment trust specializing in the design,
financing, development, and operation of correctional, detention,
and community reentry facilities around the globe. GEO is the
world's leading provider of diversified correctional, detention,
community reentry, and electronic monitoring services to government
agencies worldwide with operations in the United States, Australia,
South Africa, and the United Kingdom. GEO's worldwide operations
include the ownership and/or management of 135 facilities totaling
approximately 96,000 beds, including projects under development,
with a growing workforce of approximately 23,000 professionals.
This press release contains forward-looking statements regarding
future events and the future performance of GEO that involve risks
and uncertainties that could materially affect actual results.
Factors that could cause actual results to vary from current
expectations and forward-looking statements contained in this press
release include, but are not limited to: (1) GEO’s ability to
successfully pursue further growth and continue to enhance
shareholder value; (2) GEO’s ability to access the capital markets
in the future on satisfactory terms or at all; (3) GEO’s ability to
control operating costs associated with contract start-ups; (4)
GEO’s ability to timely open facilities as planned, profitably
manage such facilities and successfully integrate such facilities
into GEO’s operations without substantial costs; (5) GEO’s ability
to win management contracts for which it has submitted proposals
and to retain existing management contracts; (6) GEO’s ability to
obtain future financing on acceptable terms or at all; (7) GEO’s
ability to sustain company-wide occupancy rates at its facilities;
and (8) other factors contained in GEO’s Securities and Exchange
Commission filings, including its Form 10-K, 10-Q and 8-K
reports.
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version on businesswire.com: https://www.businesswire.com/news/home/20190605005234/en/
Pablo E. Paez 1-866-301-4436Executive Vice President, Corporate
Relations
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