Dec 22 2014
The GEO Group (“GEO”) announced today the development of a 626-bed expansion to the company-owned, 532-bed Karnes County Residential Center in Texas under an amendment to GEO’s existing contract with Karnes County, Texas and the existing intergovernmental service agreement between Karnes County and U.S. Immigration and Customs Enforcement.
GEO will finance, develop, and manage the $36 million expansion, which will increase the Facility’s total capacity to 1,158 beds. The expansion is expected to generate approximately $20 million in additional annualized revenues for GEO and returns on investment consistent with GEO’s company-owned facilities. GEO expects to complete the 626-bed expansion and begin intake in the fourth quarter of 2015.
George C. Zoley, Chairman and Chief Executive Officer of GEO, said, “We appreciate the confidence placed in our company by U.S. Immigration and Customs Enforcement, which has been tasked with helping our nation respond to an unprecedented humanitarian crisis by providing appropriate residential care for families. The expansion of our long-standing public-private partnership with ICE will provide a long-term solution to the expected ongoing need for residential care for families.”
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 98 facilities totaling approximately 79,000 beds, including projects under development, with a growing workforce of approximately 18,000 professionals.