Toronto, Ontario – July 28, 2008: Aecon Group Inc. (TSX: ARE) announced today that its Buildings Division has reached commercial close on the previously announced renovation and expansion of the Toronto Rehabilitation Institute’s (Toronto Rehab) University Centre on University Avenue in Toronto.
Commercial close means that Aecon has successfully completed negotiations with Infrastructure Ontario and Toronto Rehab, and has signed the required project award documents.
Under the Ontario government’s Alternative Financing and Procurement (AFP) program, the Toronto Rehab expansion project is being executed as a ‘build-finance’ project, where Aecon will finance the project through the construction period, and receive payment from Toronto Rehab upon completion of construction, through funding from the Ministry of Health and Long-Term Care and the hospital’s fundraising efforts.
Financial close is expected in August, at which time the cost of the contract will be disclosed. Construction will commence immediately following financial close, and is scheduled to be completed in fall 2011.
The renovation and expansion plan includes:
· renovations to the hospital’s existing 12-storey east wing and four-storey north wing;
· construction of a new 13-storey patient-care and research tower;
· 17,000 square feet of new dedicated research space; and
· dedicated education space.
Aecon and their financial advisor, Stonebridge Financial Corporation, have secured financing from financial partners: The Manufacturers Life Insurance Company, Industrial Alliance Insurance & Financial Services Inc., Canada Life Assurance Company, and The Equitable Life Insurance Company of Canada.
“The Toronto Rehab expansion is Aecon’s second hospital project secured through Infrastructure Ontario in the last several months, reflecting the growing healthcare market in Ontario and the strategic priority we are placing on this sector,” said Robert McDonald, President of Aecon Buildings. “It is an exciting opportunity for Aecon, and we look forward to working with the hospital and Infrastructure Ontario.”
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.