Transactions & Cases Detail
Humber River Regional Hospital achieves financial close to construct new acute care facility
September 23, 2011
1.75 Billion CAD
On September 23, 2011, Humber River Regional Hospital, with its co-sponsor Infrastructure Ontario, reached financial close with Plenary Health Care Partnerships to design, build, finance and maintain (for a 30-year concession) Humber’s new acute care hospital.
Humber River Regional Hospital’s new state-of-the-art acute care facility will be constructed on a block of approximately 27 acres at Keele Street and Highway 401 in northwest Toronto. Highlights of the project include: increased capacity from 549 to 656 beds to meet the needs of the growing surrounding community, expanding emergency services to accommodate approximately 15 per cent more visits, increased specialized geriatric outpatient services, modern diagnostics equipment for detailed, accurate patient diagnosis and treatment and updated infectious disease containment systems to monitor and prevent a broad range of infections. When completed, the new hospital will be approximately 1.6 million square feet.
The project is being delivered using an Alternative Financing and Procurement model. Plenary Health Care Partnerships will receive annual payments from Humber River Regional Hospital over a 30-year period following construction completion. Payments cover construction, building maintenance, life-cycle repair and renewal, and project financing. Project costs will total approximately $2.59 billion after 30 years (approximately $1.75 billion in today’s dollars).
Plenary Health Care Partnerships’ team members include Plenary Group, Innisfree, HCP Canada, PCL Constructors Canada, as construction contractor, Johnson Controls, as service provider, HDR Inc., C.F. Møller Architects, Hewlett-Packard, Plan Group, Modern Niagara, Smith+Andersen, Halsall Associates and RBC Capital Markets.
The $1.086 billion financing for the project is comprised of $80 million of equity, split equally between Plenary and Innisfree, and short- and long-term bonds issued in three series: $482 million of short-term bullet bonds; $375 million of long-term amortising bonds; and $149 million of long-term bullet bonds. RBC Capital Markets underwrote the entire bond issuance, with National Bank Financial and TD Securities acting as selling agents.
McCarthy Tétrault LLP represented Infrastructure Ontario and Humber River Regional Hospital, with a team led by Gordon Willcocks.