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Global infrastructure investment company BBGI SICAV has completed the acquisition of a further 50% equity interest in the Kelowna and Vernon Hospitals PPP project in British Columbia.
The project consists of a Patient Care Tower, University of British Columbia Clinical Academic Campus and car park, and a Clinical Laboratory Support Building at Kelowna Hospital, and a Patient Care Tower at Vernon Jubilee Hospital totalling approximately 70,000 square meters of space.
The asset revenues are availability-based in accordance with the investment policy of the company.
The concession runs until 2042 and availability payments are received from the Interior Health Authority, which is funded by the Province of British Columbia which is rated Aaa by Moody's and AAA by S&P. BBGI's equity interest in the project is now 100%.
The contractual arrangements between the parties required that the exact purchase price be confidential but the company confirmed they were less than £15 million.
Duncan Ball, Co-CEO said: 'Having first acquired an interest in these important healthcare facilities in 2013, we are delighted to be able to further increase our equity interest via a follow-on investment. This acquisition was made on accretive terms and concluded without engaging in an auction process.'
The cash consideration for the transaction was funded from the company's existing cash resources and debt facilities.
Frank Schramm, Co-CEO said: 'We are very pleased to continue to invest and support this important health care infrastructure project which provides vital services to the communities in the Interior of British Columbia.'