Toronto, Ontario – August 19, 2008: Aecon Group Inc. (TSX: ARE) announced today that its Buildings Division has reached Financial Close on the expansion and renovation of the Toronto Rehabilitation Institute’s (Toronto Rehab) University Centre located on University Avenue in Toronto.
Under the Ontario government’s Alternative Financing and Procurement (AFP) program, the approximately $112 million Toronto Rehab expansion project is being executed as a ‘build-finance’ project. Aecon will finance the project through the construction period, and will receive from Toronto Rehab an interim payment upon completion of the new tower, and a final payment upon completed construction through funding from the Ministry of Health and Long-Term Care and the hospital’s fundraising efforts.
Financial Close was reached on August 19, and construction will commence on August 20, 2008. The project is scheduled to be completed in the fall of 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;
· dedicated education space; and
· a new, more accessible entrance to the building for patients and families.
Aecon and their financial advisor, Stonebridge Financial Corporation, have secured non-recourse project financing from financial partners: The Manufacturers Life Insurance Company, Industrial Alliance Insurance & Financial Services Inc, London Life Insurance Company and The Equitable Life Insurance Company of Canada.
“The Toronto Rehab expansion is Aecon’s second build-finance 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. “These projects, along with the successful and ongoing hospital work we’re doing in Atlantic Canada, demonstrate the expertise and competitive strength Aecon has established in the healthcare and alternative financing and procurement sectors.”
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.