Virgin Trains USA engaged Urban to perform independent physical and financial assessments of ongoing construction.
Virgin Trains USA, LLC, (Virgin) is developing and constructing the only privately held intercity passenger rail service and Transit Oriented Development (TOD) in the United States. Formerly known as “Brightline” and All Aboard Florida, the project will provide express transit between Orlando and Miami. The service is being developed and constructed in three phases.
Virgin is currently constructing the first phase between West Palm Beach and Miami, a $1.04 billion, 68-mile transit corridor project. This phase includes 450,000 square feet of station and retail space at Miami, Ft. Lauderdale, and West Palm Beach, a maintenance and repair facility, and procurement of five new trainsets from Siemen’s Transportation Group. Virgin has established to begin Phase 1 revenue service in the fall of 2017. Part of the funding for Virgin’s new line includes a $405 million payment-in-kind (PIK) toggle bond.
Phase 1 also includes:
Virgin engaged Urban to perform independent physical and financial assessments of the ongoing construction progress and construction invoicing relative to the contractual budgets and schedules as a condition of the PIK toggle bond. Urban accomplishes the assessments by making monthly site visits, examining construction progress at all project locations, reviewing and analyzing financial records and invoicing, and interviewing management. Urban’s primary focus is the portion of the construction funded by the PIK toggle bond investment; however, project success is also determined by Urban’s assessment of the project entirety. Thus, all aspects of construction are addressed in the monthly assessments.
Urban’s services provide a valuable benefit to the success of Phase 1 by providing confidence to bondholders and verifying Virgin’s financial position. Phase 2 will include connecting West Palm to Orlando International Airport.