by Brianna Crandall — June 6, 2011—The GEO Group announced on June 1 that the City of Adelanto, California has signed a public-private partnership contract with GEO to renovate a 650-bed detention facility for federal immigration detainees in Adelanto that GEO purchased from the City in June 2010 for approximately $28.0 million, and to construct a 650-bed expansion on land immediately adjacent to the facility. The expansion of the facilities will enable the U.S. Immigration and Customs Enforcement (ICE) to stop transferring immigration detainees to other offices due to a lack of space.
GEO has invested approximately $22.0 million to renovate and retrofit the existing 650-bed Facility and will further invest approximately $70.0 million for the 650-bed expansion that will bring the facility’s capacity to 1,300 beds. GEO expects to complete the renovation of the existing facility and to begin the initial intake of 650 detainees in August 2011. GEO expects to complete the new 650-bed expansion and to begin the intake of the additional 650 detainees by August 2012.
Following the initial intake of 650 detainees, the existing Facility is expected to generate approximately $21 million in annualized revenues for GEO with a 75 percent occupancy guarantee. At the full occupancy level of 1,300 beds following the expansion, the Facility is expected to generate approximately $42 million in annualized revenues for GEO with a 75 percent occupancy guarantee.
The GEO Group is a leading provider of correctional, detention, and residential treatment services to federal, state, and local government agencies around the globe. GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO represents government clients in the United States, Australia, South Africa, and the United Kingdom. GEO’s worldwide operations include the management and/or ownership of approximately 80,000 beds at 116 correctional, detention and residential treatment facilities, including projects under development.
