Balfour Beatty reaches close on Canadian PPP(2)

The London-based developer will provide 70% of the equity involved in the $320m hospital deal.

Balfour Beatty has reached financial close on the C$350 million (€231 million; $320 million) BC Children’s & BC Women’s Redevelopment Project in British Columbia, Canada.

The public-private partnership (PPP; P3) involves the design, construction, financing and facilities management for a new children’s and women’s acute care centre in Vancouver. Construction is expected to start immediately.

Balfour Beatty Investments will inject up to C$16 million in the project, representing 70 percent of the equity involved. Ledcor Developments, its partner in the winning Affinity Partnerships consortium, will invest the remaining capital. The grouping was announced preferred bidder in January 2014.

Construction will be carried out through a 50/50 joint venture between Balfour Beatty Construction and Ledcor Design Build. In addition, Balfour Beatty Communities and Black & McDonald will form a 50/50 joint venture to deliver facilities management services over the asset’s 30-year concession period.

The project, Balfour Beatty’s first large-scale healthcare deal in Canada, comes at a time when the firm forges on with its efforts to raise Balfour Beatty Infrastructure Partners, an infrastructure fund the firm sees as “arms’ length” from Balfour Beatty.

The vehicle, which held a first close on $420 million in January 2013, targets $1 billion. Data from Infrastructure Investor Research & Analytics shows that the fund had passed its halfway mark – having garnered $508 million – at the end of February.