Rouge Valley project reaches $64 million financial close
Oct 4, 2007
Toronto, Ontario – October 4, 2007: Aecon Group Inc. (TSX: ARE) announced today that its Buildings Division has reached financial close of the $63.9 million Phase I Rouge Valley Health System project and is set to start construction immediately.
Pursuant to the Ontario government’s alternate financing and procurement program, Aecon has secured non-recourse debt financing for the project. The debt will be retired from the $63.9 million contract price, which is to be paid in full following completion of construction.
Stonebridge Financial Corporation acted as Aecon’s financial advisor, and financing is being provided by The Manufacturers Life Assurance Company, London Life Insurance Company, and Industrial Alliance Insurance & Financial Services Inc.
Construction will begin immediately and is expected to be completed in the summer of 2010. The hospital’s expansion and redevelopment plan includes:
• An upgraded and expanded emergency department
• Expanded laboratory, mental health and ambulatory care facilities
• A new Complex Continuing Care Unit with capacity for 30 beds
• The development of diagnostic imaging and cardiac diagnostic areas
“Financial close is a key milestone on the project for both the Rouge Valley Health System and Aecon Buildings Group,” said Robert G. McDonald, President Aecon Buildings. “We are pleased to be expanding in the field of healthcare infrastructure, and we’re eager to start construction on this significant project.”
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.