Project description:

The project involves the design, construction, financing and maintenance of a new clinical research centre for the Centre Hospitalier de l’Université de Montreal (CHUM under a public-private partnership framework). Located in downtown Montreal, two new facilities will have a gross area totaling 68,431 square meters and will be able to accommodate about 110 research teams and 500 temporary users (incl. students and patients). The project’s objective is to build an ultra modern, state-of-the-art integrated research centre that will be focused on innovation, non-invasive human exploration and knowledge transfer applied to health care services, populations and teaching.

The construction phase started in May 2010 and will last approximately 40 months. It will be followed by a 30-year service phase commencing upon substantial completion and ending in September 2043. The construction work will be performed by a design-build joint venture consisting of Pomerleau and Verreault, two of Québec’s largest construction companies, under a fixed-price date-certain contract valued at C$425m. Honeywell will manage the facility during its operation phase. CHUM will compensate the consortium through a combination of payments linked to the availability and performance of the research centre and will also finance 45% of the total construction cost via milestone payments paid during construction and at substantial completion. All payments are backed by the Province of Quebec (A+/Aa2)

Project capital structure:

Meridiam will share its interest in the project with Fiera-Axium Infrastructure with respectively 60% for Fiera and 40% for Meridiam, representing a C$26m total capital commitment for Meridiam comprising C$17.5m of equity and C$8.5m of mezzanine loan.
Other sources of financing consist of:

•  Short term bonds (up to 70 months) for C$59.7m to bridge the last milestone payment paid at substantial completion;
• Amortizing term bonds due December 2042 for C$334.1m to be repaid through the availability payments;
• As noted above, Milestones Payments paid by the Client for a total of about C$191m.