SNC-Lavalin and McGill University Health Centre Announce Financial Closure for the Glen Campus
SNC-Lavalin and the McGill University Health Centre (MUHC) are proud to announce the financial closure and official signing of a partnership agreement between the MUHC and the McGill Health Infrastructure Group (MHIG), composed of SNC-Lavalin and Innisfree Ltd. Under this 34-year public-private partnership (PPP) the MHIG will design, build, finance and maintain the MUHC’s new Glen Campus. Construction is underway and should be completed in the autumn of 2014. Once completed, MHIG will maintain the campus for the next 30 years.
The MHIG has raised $764 million through the sale of Senior Secured Bonds, which have been assigned a rating of A- by Standard & Poor’s and A (low) by DBRS. SNC-Lavalin Inc. and Innisfree Secondary Fund LP committed to invest, directly or indirectly, an amount of $192 million in equity and subordinated debt. The MUHC will also contribute to the financing, mainly through its $300-million fundraising campaign, which reflects the community’s support for the project. Credit facilities have also been obtained for the duration of the construction.
Covering an area of 220,000 m2, the MUHC’s Glen Campus will make it possible to centralize ambulatory services for 25 departments and offer dedicated areas for world-class teaching, research and patient care, as well as 20 operating rooms,154 paediatric and 346 adult single-patient rooms—all with private bathrooms and space for visiting family members. The New MUHC will transform health care by creating healing spaces that are respectful of the environment.
“For SNC-Lavalin and its partners, this is the materialization of a major project that carries both hope and pride for the MUHC, for Montréal and for Quebec as a whole. We are very pleased to have been awarded this key public-private partnership project, which will give us a unique opportunity to demonstrate our expertise in carrying out major infrastructure projects, particularly in the healthcare sector,” stated Riadh Ben Aïssa, Executive Vice-President, SNC-Lavalin Group Inc.
“This announcement marks a pivotal step in our journey to transform health care for generations to come,” added the Hon. Arthur T. Porter, MUHC Director General and Chief Executive Officer. “The Glen Campus is an exceptional parcel of land whose future vocation as one of the world’s foremost academic health centres is emerging through this equally exceptional partnership.”
The McGill University Health Centre (MUHC) is a comprehensive academic health centre recognized internationally for excellence in care, research and teaching. Highly committed to the continuum of care in the community, it is affiliated with the Faculty of Medicine of McGill University. The MUHC’s partner hospitals – the Montreal Children's Hospital, the Montreal General Hospital, the Royal Victoria Hospital, the Montreal Neurological Hospital, the Montreal Chest Institute and the Lachine Hospital – value multidisciplinary service throughout the life span along with innovative technologies and practices, strategic partnerships and leadership in knowledge transfer. The MUHC is currently carrying out a $2.25 billion Redevelopment Project on three campuses – the Mountain, the Glen and Lachine – designed to provide healthcare professionals with an effective environment in which to ensure patients and their families benefit from The Best Care for Life. The campuses are also anchored in best sustainable-development practices, including LEED® and BOMA BESt guidelines. www.muhc.ca www.muhc.ca/construction
SNC-Lavalin (TSX:SNC) is one of the leading groups of engineering and construction companies in the world, and a key player in infrastructure ownership and facilities and operations management. SNC-Lavalin has offices across Canada and in over 35 other countries, and is currently working in some 100 countries around the world. www.snclavalin.com