Etobicoke General Hospital Phase 1 Patient Tower Project reaches financial close

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 to the existing hospital. The project aims to achieve 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, as well as by Borden 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. 

ENGIE Services Inc. was represented by Dentons Canada LLP with a team that included Anca Neacsu and Charles Bardou.

The lenders were represented by Stikeman Elliott LLP with a team that included Jamie Templeton and Scott Perrin.