Balfour Beatty, the international infrastructure group, announces today that it has reached financial close on the £196 (C$350) million BC Children’s & BC Women’s Redevelopment Project (Phase 2) in British Columbia, Canada. As part of the Affinity Partnerships consortium, Balfour Beatty Investments will invest up to £8.9 (C$16.0) million into the project, which represents 70% of the equity required, with Ledcor Developments investing the remaining equity. Balfour Beatty was announced as preferred bidder in January 2014.
The PPP (P3) project scope covers the design, construction, financing and facilities management for a new children’s and women’s acute care centre in Vancouver. Construction services will be delivered through a 50:50 joint venture between Balfour Beatty Construction and Ledcor Design Build. Construction activity is expected to commence immediately.
In addition, Balfour Beatty Communities and Black & McDonald Limited will participate in a 50:50 joint venture to deliver facilities management services over the 30-year concession period.
Commenting today, Andrew McNaughton, Balfour Beatty CEO said, “This is a landmark project for Balfour Beatty, our first large healthcare project in Canada, which establishes our local presence. We are delighted to be working with the Provincial Health Services Authority to deliver and manage this world class acute care centre.”
Analyst/investor enquiries:
Anoop Kang
Tel. +44 (0)20 7216 6913
Anoop.kang@balfourbeatty.com
Media enquiries:
Patrick Kerr
Tel. +44 (0) 20 7963 4258
Patrick.kerr@balfourbeatty.com
Notes to editors:
About the project
The BC Children’s and BC Women’s Redevelopment Project, an initiative of the Provincial Health Services Authority, is a three-phase, multi-year initiative to build the new Teck Acute Care Centre and to renovate existing facilities at BC Children’s Hospital (BC Children’s) and BC Women’s Hospital & Health Centre (BC Women’s).
The completed project will be an integral part of British Columbia’s healthcare system and will provide much-needed specialized care for the sickest newborns, children and youth and the most complex obstetrical cases.
Phase 2 of the project has a total construction value estimated at £196M (C$350M). Its features will include:
- Neonatal Intensive Care Unit: providing 70 bassinettes in 70 single-patient rooms.
- Pediatric Intensive Care Unit: with a focus on single-patient rooms, with enough room for a parent to stay overnight.
- High Risk Birthing: single-patient rooms will be close to operating rooms and provide enough room for a partner to stay overnight. Hematology/Oncology Department: integrated inpatient and outpatient Hematology/Oncology Department with views of nature and access to rooftop gardens.
- Medical Imaging and Procedures Suites: integrated Medical Imaging and Procedures Suites with the capability of Ultrasound, MRI, CT.
- Emergency Department – more single-patient rooms and dedicated space to address the needs of children with mental health issues.
- Inpatient Units – two floors of medical/surgical inpatient units with a focus on single-patient rooms.
- Clinical Education and Research Space – all clinical areas include integrated space to accommodate hundreds of medical students, residents, nursing students and other health professional trainees.
- Parking - 80 additional underground parking stalls.
Project financing
Affinity Partnerships has raised circa C$176 million of long term, non-recourse senior debt from Canadian institutions which will represent approximately 90% of the external funding requirement of the project. This debt will be combined with the equity commitments from Balfour Beatty Investments and Ledcor Developments as well as capital contributions from the Province and donors to the BC Children’s & BC Women’s Hospital, in order to fund the design, construction and commissioning of the Teck Acute Care Centre.
About Balfour Beatty
Balfour Beatty (www.balfourbeatty.com) is an international infrastructure group that delivers world class services essential to the development, creation and care of infrastructure assets; from finance and development, through design and project management to construction and maintenance.
Our businesses draw on more than 100 years of experience to deliver the highest levels of quality, safety and technical expertise to our clients principally in the UK and the USA, with developing businesses in Australia, Canada, the Middle East, South Africa and South East Asia.
With proven expertise in delivering infrastructure critical to support communities and society today and in the future, our key market sectors focus on infrastructure - transportation (roads, rail and aviation), power and energy, water, and complex buildings (both commercial and social).
Balfour Beatty employs 40,000 people around the world.
About Ledcor
The Ledcor Group of Companies (www.ledcor.com) is one of North America's most diversified construction companies, serving the building, oil & gas, infrastructure, mining, power and communications sectors. Ledcor employs over 8000 people across 20 offices.
About Black and McDonald
Limited Black & McDonald (www.blackandmcdonald.com) is a privately held contractor that has been providing electrical services for over 90 years. Black and McDonald provides engineering, construction and maintenance services to electric utilities, municipalities, industrial and commercial customers from their facilities located throughout the US and Canada.
