Social Infrastructure · Military

What pays for a garrison, and how stable it is

A defence-estate PPP houses and supports a garrison: an investor funds the barracks and facilities and is paid a long, government-backed, inflation-linked availability charge for the accommodation, paid whether or not every bed is filled, plus garrison services (messing, transport, training-area and FM) that flex with how many troops are actually on the base. The accommodation annuity is the contracted bedrock; the services layer adds a manning-linked kicker. The case comes down to the size of the estate, the charge, and the manning level.

4,000
£14k
90%
LIVE
Manned quarters troops billeted, services in use Available bed-space funded whether filled or not Garrison services messing, transport, training Unitary charge paid at the HQ
Flows, annualised from current assumptionsper year
Revenue p.a.
£0
£0 / hr
EBITDA p.a.
£0
0% margin
Revenue / bed-space
£0
accom + services
Troops on base
0
90% manning
Stocks: what the flows accumulate intolive
Troops on base now
0
of 4,000 bed-spaces
EBITDA banked · session
£0
accumulating in real time
Implied enterprise value
£0
at 15× EBITDA
Where revenue comes from Total £0 p.a.
Accommodation
Garrison services
Why investors like defence-estate PPPs: the accommodation availability charge is a multi-decade, sovereign-backed, inflation-linked annuity with essentially no demand risk: the MoD pays for the bed-spaces regardless of manning, which supports very high leverage and low, stable equity returns. The garrison-services layer (catering, transport, training-area upkeep) flexes with how many troops are on base, adding a modest manning-linked kicker. Few income streams in infrastructure are less volatile.
Revenue streams£0 p.a.
Operating costs£0 p.a.
Investment case: should you buy it?DCF returns

Year-1 financials flow live from the simulation above: revenue £0 and EBITDA £0 p.a. Set your deal terms below and watch the unlevered IRR (asset return) and levered IRR (return to equity, after debt) recompute instantly.

Operating

%
%
%
%
%
%

Valuation & hold

×
×
y

Financing

×
%
%
Unlevered IRR
—
asset / project return
Levered IRR
—
return to equity
Equity multiple
—
MOIC over hold
Equity gain
—
exit equity − invested
Equity cash-flow profile£m · ■ invested   ■ returned
Projection, £m per year

Illustrative model. Represents an availability-based defence-estate / garrison-support PPP. Revenue = a contracted accommodation availability charge (bed-spaces × charge, paid regardless of manning) plus garrison services (messing, transport, training-area & FM) and training/estate income that scale with the manning level. Operating costs (estate FM & lifecycle, catering & garrison services, base staffing, insurance & admin) are part fixed (per bed-space) and part manning-driven, so the accommodation annuity is a stable high-margin core while services revenue and cost flex together. EBITDA = revenue − operating costs; excludes upfront construction capex and senior debt service. The investment case is a simplified DCF. For illustration only, not investment advice, and not any specific asset.