Friday, February 02, 2007
John Laing, the leading project developer and investor in public private partnerships (P3s) in the United Kingdom and around the world, has reached agreement with Macquarie Group to buy its shares in two companies formed to design, build, finance, and manage substantial healthcare facilities in British Columbia, Canada under 30 year concessions.
Under the agreement John Laing Infrastructure will buy:
• Access Health Abbotsford (AHA), the company selected to design, build, finance and maintain the new C$355 million Abbotsford Regional Hospital and Cancer Centre, and
• Access Health Vancouver (AHV), the company selected to design, build, finance and maintain the C$95 million Gordon and Leslie Diamond Health Care Centre at Vancouver General Hospital.
These two investments are John Laing’s first in the Canadian market.
Derek Potts, Managing Director of John Laing Infrastructure said:
“We are delighted to have made this first significant acquisition in the Canadian healthcare infrastructure market. It is firmly in line with our stated strategy to internationalise our business in sectors where we have substantial, existing knowledge.
“We see many opportunities in both Canada and the United States to bring our expertise to bear, and we are actively bidding for a number of projects in the infrastructure and social infrastructure fields.”
The transfer of ownership will consolidate responsibility for the completion of construction and the long-term facilities management of these two projects into the hands of John Laing with its in-depth expertise in the project management of construction and facilities & property management in public private partnership (P3) projects.
Under the project agreements, which remain in place, both the construction process and the ongoing facility management operations will continue to be delivered by the existing contractors. John Laing will supervise the construction process and property management. Healthcare operations are not affected because they are not included in these agreements.
Background on AHA and AHV
AHA and AHV were established to deliver cost savings and innovation in design, construction and property management of the two new healthcare facilities. AHA was recognized for its innovation in 2005 when the Abbotsford Regional Hospital and Cancer Centre project was named the North American PPP Deal of the Year by Project Finance magazine.
The Gordon and Leslie Diamond Health Care Centre is owned by Vancouver Coastal Health, which provides all clinical services. The facility is also part of the University of British Columbia Faculty of Medicine. AHV provides non-clinical services, such as security, parking and property management. AHV provides facilities management services through Brookfield LePage Johnson Controls (BLJC). The Gordon and Leslie Diamond Health Care Centre reached substantial completion on 18th August 2006. The project was completed on time and on budget.
The Abbotsford Regional Hospital and Cancer Centre is currently under construction, led by PCL Constructors Westcoast. It is on budget and on schedule for completion in the spring of 2008. The Abbotsford Regional Hospital and Cancer Centre is owned by the Fraser Health Authority and the Provincial Health Services Authority/BC Cancer Agency, which provide all clinical services. At the completion of construction in 2008, AHA will provide non-clinical services, such as foodservices, laundry, security, parking, housekeeping and maintenance.
About John Laing
John Laing is one of the UK's leading investors, developers and operators of privately financed, public sector infrastructure projects such as health, education, roads and railways. Its core business is focused entirely upon the development of P3 projects and operations. The Group currently invests in a total of 52 projects. Most of the investments are in the UK, though a number are in continental Europe, and the group is targeting growth in several European and North American markets.
For further information contact:
Canada
Craig Fitzsimmons at NATIONAL Public Relations
Tel: + (604) 375 3677 or email: cfitzsimmons@national.ca
James Bennett, Investment Director, John Laing Infrastructure Ltd
Tel: + (416) 915 0115 or email: james.bennett@laing.com
UK
Matthew Moth at Madano
Tel: + 44 (20) 7593 4000 or email: matthew.moth@madano.co.uk
Gary Neville, Director, John Laing plc
Tel: + 44 (20) 7901 3200 or email: gary.neville@laing.com
Christine Jones, Communications Manager, John Laing plc
Tel: + 44 (20) 7901 3200 or email: christine.jones@laing.com