TORONTO, July 28 /CNW/ - Aecon Group Inc. (TSX: ARE) announced today that
its Buildings Division has reached commercial close on the previously
announced renovation and expansion of the Toronto Rehabilitation Institute's
(Toronto Rehab) University Centre on University Avenue in Toronto.
Commercial close means that Aecon has successfully completed negotiations
with Infrastructure Ontario and Toronto Rehab, and has signed the required
project award documents.
Under the Ontario government's Alternative Financing and Procurement
(AFP) 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 renovation and expansion plan includes:
- renovations to the hospital's existing 12-storey east wing and four-
storey north wing;
- construction of a new 13-storey patient-care and research tower;
- 17,000 square feet of new dedicated research space; and
- dedicated education space.
Aecon and their financial advisor, Stonebridge Financial Corporation,
have secured financing from financial partners: The Manufacturers Life
Insurance Company, Industrial Alliance Insurance & Financial Services Inc.,
Canada Life Assurance Company, and The Equitable Life Insurance Company of
"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."
Infrastructure Ontario is a Crown corporation dedicated to managing some
of the province's larger and more complex infrastructure renewal projects -
ensuring they are built on time and on budget.
Aecon Group Inc. is Canada's largest publicly traded construction and
infrastructure development company. Aecon and its subsidiaries provide
services to private and public sector clients throughout Canada and
The information in this news release includes certain forward-looking
statements. These statements are based upon assumptions that are subject to
significant risks and uncertainties which are discussed in greater detail in
the section entitled "Risk Factors and Uncertainties" in Management's
Discussion and Analysis of operating results and Financial Condition for the
year ended December 31, 2007 filed on SEDAR at www.sedar.com. Although Aecon
believes that the expectations reflected in forward-looking statements are
reasonable, it can give no assurance that the expectations of any
forward-looking statements will prove to be correct.
For further information:
For further information: Mitch Patten, Vice President, Corporate
Affairs, Aecon Group Inc., (416) 297-2615, firstname.lastname@example.org, www.aecon.com