BBGI buys stake in Canadian hospital – BBGI SICAV has acquired a 25% equity interest in the Stanton Territorial Hospital PPP Project. This project is one where BBBGI’s revenues will depend on whether the hospital is available for use rather than being linked to anything like the volume of patients using it.
Stanton is a new 27,000 sqm hospital with 100 patient rooms located in Yellowknife, Northwest Territories, Canada. The project is in the final stages of construction and has a 30-year operational period. Availability payments will be received from the Government of Northwest Territories, which is rated Aa1 by the credit rating agency Moody’s. The facility management contractor is a wholly-owned subsidiary of Fairfax Financial Holdings Limited which has taken over the contract from Carillion Canada Inc. BBGI does not have any exposure to Carillion either as construction contractor or as facility management contractor.
The cash consideration for the interest acquired has been funded from existing cash resources and drawings under the existing credit facility to back the equity commitment. As per the arrangements between the parties the specific purchase price is confidential but is less than GBP 5 million.
Duncan Ball, Co-CEO said: “We are delighted to invest into this high-quality PPP project. This acquisition was made on accretive terms and concluded without engaging in an auction process. It also provides the potential to acquire further equity interests in the future.”
BBGI : BBGI buys stake in Canadian hospital