BBGI takes chunk of health centre in Montreal through SNC-Lavalin partnership

Public-private partnership infrastructure investment company BBGI SICAV has now completed its investment in the McGill University Health Centre (MUHC), it announced on Friday, which was an investment made through the existing strategic partnership it had with SNC-Lavalin Group.

The London-listed firm said the asset was classified as availability-based under its investment policy.

It described MUHC as a 214,000 square metre hospital with 500 private patient rooms in Montreal.

The project became operational in 2014, with the concession running until 2044.

Availability payments were received from MUHC, which was rated A by credit rating agency DBRS.

BBGI said cash consideration for the interest acquired was funded from its existing cash resources, and drawings under its extended credit facility.

It marked the fifth transfer by SNC-Lavalin into the partnership.

The total cash consideration paid for all five project interests previously announced was around CAD 191m.

“Following the acquisition of the additional project interest, BBGI owns a diversified global portfolio of 44 infrastructure assets spread across six AAA/AA rated countries,” the company’s board said in its statement.

“All these projects are availability-based public-private partnership assets, and are supported by contracted, public sector-backed revenue streams, with inflation-protection characteristics.”

In addition, BBGI said it had the benefit of a pipeline agreement with the partnership, which should provide access to a “robust” pipeline of availability-based public-private partnership assets in Canada, which were currently under construction.

The assets included the Highway 407 East Extension Phase I, the Confederation Line, and the Eglinton Crosstown LRT in Ontario; the John Hart Generating Station in British Columbia; and the New Corridor for the Champlain Bridge in Quebec.