BBGI buys Canadian hospital and road projects

BBGI buys Canadian hospital and road projects – BBGI has completed the acquisition of a further 25% equity interest in the Stanton Territorial Hospital Project. Stanton is an operational 27,00sqm hospital with 100 patient rooms located in Yellowknife, Northwest Territories, Canada. The concession runs until 2048 and availability payments are received from the Government of Northwest Territories, which is rated Aa1 by the credit rating agency Moody’s. BBGI’s interest in the project is now 50%.

The contractual arrangements between the parties require that the exact purchase price be held confidential but it was less than £10m.

Highway 104

BBGI, together with its consortium partners, was recently named as the preferred bidder for an availability-based motorway project in Canada that will twin Highway 104 between Sutherlands River and Antigonish in Nova Scotia. Financial close is expected in the second quarter of 2020. Construction is scheduled to begin this spring, with completion expected in 2023. The concession will run until 2043 and availability payments will be received from the Government of Nova Scotia, which is rated Aa2 by Moody’s and AA- by Standard & Poor’s. BBGI’s equity interest in the project will be 50%.

The cash consideration for both interests in Stanton Hospital and Highway 104 will be funded from existing cash resources and/or debt facilities.

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