Aecon Reaches Financial Close on $91.5 Million Lakeridge Health Corporation Redevelopment Project
Wed., Feb. 11, 2009
TORONTO, ONTARIO - Aecon Group Inc. (TSX: ARE) announced today that its Buildings and Concessions Divisions have reached Commercial and Financial Close on the redevelopment of the Lakeridge Health Oshawa hospital project.
Under the Ontario government's Alternative Financing and Procurement (AFP) program, the approximately $91.5 million redevelopment project is being executed as a 'build-finance' project. Aecon will finance the project through the construction period, and will receive from Lakeridge Health Corporation a payment of the full amount when construction is completed.
Lakeridge Health Corporation is a community based corporation providing hospital services to approximately 510,000 people in the Regional Municipality of Durham east of Toronto. The Hospital operates four sites: Lakeridge Health Bowmanville, Lakeridge Health Oshawa, Lakeridge Health Port Perry, and Lakeridge Health Whitby.
Commercial and Financial Close were reached on February 10, 2009. Aecon Buildings will commence construction in March 2009, and the project is scheduled to be completed in the spring of 2011.
The Project is Phase 5 of a large redevelopment of the Oshawa site that has seen significant portions of construction completed. The current project work includes:
- new construction of two additional floors onto the existing two-floor South Infill Building which houses: paediatric support, child and adolescent mental health inpatient support, and maternal program administration;
- the "fit out" (from bare walls to finished status) of six floors of the Southeast Tower above the Durham Cancer Centre which houses: paediatrics, oncology, general medical/surgical and rehabilitation inpatient services, as well as child, adolescent and adult mental health services and outpatient dialysis departments;
- renovations to the A, F, and G wings of the hospital, which house: ambulatory maternal care, adult mental health support and administration, rehabilitation support, patient management services, the maternal newborn program, the central sterilization and reprocessing department, paediatric support, mental health, and medical oncology support.
Stonebridge Financial Corporation, acting as financial arranger, secured non-recourse project debt financing for the project from the following financial partners: The Manufacturers Life Insurance Company, London Life Insurance Company, Industrial Alliance Insurance & Financial Services Inc., The Equitable Life Insurance Company of Canada.
"Even in difficult economic times, it is necessary to invest in social infrastructure, particularly in the healthcare segment, and this award demonstrates Aecon's ongoing commitment and ability to secure private sector support for needed health care projects," said Robert McDonald, President of Aecon Buildings. "Aecon is pleased to be working closely with both Lakeridge Health Corporation and Infrastructure Ontario to meet the needs of the people of Durham Region."
Infrastructure Ontario is a Crown corporation dedicated to managing some of the province's larger and more complex infrastructure renewal projects - ensuring they are built on time and on budget.
Aecon Group Inc. is Canada's largest publicly traded construction and infrastructure development company. Aecon and its subsidiaries provide services to private and public sector clients throughout Canada and internationally. Aecon is pleased to be recognized as one of the 10 Best Employers in Canada as published by Report on Business Magazine, as well as one of the Top 100 Employers in Canada as published in MacLean's Magazine. |
