Fiera Infrastructure and EllisDon Capital have joined forces to create a Canadian public-private partnerships (PPP) venture.
The newly formed partnership will acquire EllisDon’s interest in its existing portfolio of PPP projects and have the right of first offer over EllisDon’s future PPP projects for a pre-agreed period.
The companies said in a statement that the partnership was formed in October 2018 and the acquisition of the first three projects is expected to close in the first quarter of this year. Financial details were undisclosed.
EllisDon’s existing portfolio contains interests in ten PPP projects across the social, healthcare and transportation subsectors. In addition to the ten-project portfolio, EllisDon was awarded two additional projects in 2018.
EllisDon said the partnership will allow it to redeploy capital back into development and operating activities while retaining an ownership interest and participating in the long-term management of these assets.
EllisDon will act as the manager of the partnership.
Fiera Infrastructure said its investment in the projects will be added to its global infrastructure fund.
Alina Osorio, president of Fiera Infrastructure, said: “Partnering with EllisDon, one of North America’s most successful and experienced construction capital groups, enables Fiera Infrastructure to further access the highly competitive Public-Private Partnership market with a strategic long-term partner.”
“This marquee transaction should provide our investors with ongoing access to essential Canadian infrastructure assets with low-risk, reliable, and stable cash flows throughout the lives of the projects’ concessions.”
Joey Comeau, the senior vice president at EllisDon Capital, said: “This partnership demonstrates EllisDon’s ongoing commitment to proactive asset management on our PPP investments while at the same time meeting the company’s strategic business objectives.
“EllisDon remains focused on exceeding our client’s expectations on each of the projects in our investment portfolio and are excited to have established a partnership with Fiera Infrastructure to accomplish those goals.”