On May 6, 2016, William Osler Health System (“Osler”) and Infrastructure Ontario reached Financial Close with Etobicoke Healthcare Partnership LP to design, build, finance and maintain the Etobicoke Phase 1 Patient Tower Project.
Financing for the project is being provided through a short and long term credit facility with BNY Trust Company of Canada acting as security agent and Sumitomo Mitsui Banking Corporation, The Toronto-Dominion Bank and the Canada Life Assurance Company as lenders. Equity is being provided by Axium Infrastructure Canada II Limited Partnership and DIF Infra 4 Canada Ltd.
WCC Construction Canada, ULC o/a Walsh Canada will act as the Construction Contractor and ENGIE Services Inc. will act as the Service Provider for the project.
The Phase 1 Patient Tower Project involves the construction of a new four-storey wing which will add approximately 250,000 square feet of space to the existing Etobicoke General Hospital and will include a larger state-of-the-art emergency department, an ICU/CCU nearly four times larger than the current facility’s space, a maternal newborn unit with birthing suites and a specialized Level II nursery for patients with non-life-threatening complications, and an ambulatory procedures unit. The project will focus on sustainable design and construction features with the goal of achieving the Leadership in Energy and Design (LEED®) Silver Certification.
Etobicoke Healthcare Partnership LP will receive annual payments from Osler over a 30-year period. Payments cover construction, building maintenance, lifecycle repair and renewal, and project financing. The contract is valued at $330 million, which reflects the substantial completion payment and the monthly service payments before inflation adjustments.
The Osler and Infrastructure Ontario legal team was led in-house by Marty Venalainen, Legal Counsel with Infrastructure Ontario and by Christopher Parkes, Legal Counsel with Osler and byBorden Ladner Gervais LLP with a team that included Richard Shaban, Andrew Smith, Shane Pearlman and Arthur Nahas.
Etobicoke Healthcare Partnership LP and the equity providers were represented by Davies Ward Phillips & Vineberg LLP with a team that included Greg Southam, David White, Anthony Spadaro and Emily Uza.