LHSC And St. Joseph's Redevelopment Project Reaches Financial Close

On July 13, 2011, London Health Sciences Centre (LHSC) and St. Joseph's Health Care, London (St. Joseph's) with its co-sponsor Infrastructure Ontario, reached financial close with EllisDon Corporation for the construction and financing of the final phase of renovations at the two hospitals.

The contract commits EllisDon Corporation to build and finance the final phase of the LHSC and St. Joseph's redevelopment project for $162.5 million.

The contract guarantees a fixed price and a fixed delivery date, with construction expected to begin in summer 2011. The project is being built using alternative financing and procurement (AFP).

The financing for the project was arranged by The Bank of Nova Scotia (also acting as Administrative Agent), with financing provided by The Bank of Nova Scotia, The Toronto-Dominion Bank, Canadian Imperial Bank of Commerce and National Bank of Canada.

LHSC's final restructuring milestone will consolidate all patient care and teaching services at University Hospital and Victoria Hospital. As redevelopment continues, LHSC will have a capacity of up to 1,134 beds.

At St. Joseph's, a new 70,000 square foot addition and renovations to the existing facility will consolidate outpatient clinics.

Infrastructure Ontario's legal team was led in-house by Jennifer Manning. Bennett Jones LLP acted as counsel to Infrastructure Ontario, LHSC and St. Joseph's in the structuring, procurement, negotiation and settlement of the project documents, with a team that included Paul Blundy, Peter Westcott, Michael Kershaw and Colin Andrews.

EllisDon Corporation was represented by Jody Becker, Vice President and General Counsel and Rosemarie Lipman, with support from Catherine Doyle, J.R. Beaudrie, Chris Bennett and Tim Murphy of McMillan LLP. Peter Schwartz and Maurice Pellarin of Harrison Pensa LLP also acted as corporate counsel to EllisDon. Paul Harricks, Alan James and Rob Blackstein of Gowling Lafleur Henderson LLP represented LPF Infrastructure Fund and Fengate Capital Management Ltd., EllisDon's partners in the projects.

Byran Gibson, Sarah Bird, Morgan Troke and Grant Boyle of McCarthy Tétrault LLP acted as counsel to the lending syndicate.