The Aecon Group, Inc., Canada's largest publicly traded construction and infrastructure development company, has completed negotiations for the renovation and expansion of Toronto Rehabilitation Institute's University Centre.
Aecon signed the required project award documents and reached commercial close with Infrastructure Ontario and Toronto Rehab, Canada's largest academic hospital specializing in adult rehabilitation, complex continuing care and long-term care.
Under the Ontario government's Alternative Financing and Procurement 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 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."
The renovation and expansion plans include renovations to the hospital's existing 12-story east wing and four-story north wing, construction of a new 13-story patient-care and research tower, 17,000 square feet of new, dedicated research space and dedicated education space.
Aecon and its financial advisor, Stonebridge Financial Corporation, have secured financing from The Manufacturers Life Insurance Company, Industrial Alliance Insurance & Financial Services Inc., Canada Life Assurance Company and The Equitable Life Insurance Company of Canada.