Forum Equity Partners has agreed to sell part of its Canadian public-private partnership (PPP) portfolio to Fiera Infrastructure for about $400 million. The five assets being sold include a 100 percent equity stake in the Billy Bishop Toronto City Airport Pedestrian Tunnel, a project that was completed in mid-2015. Forum, a Toronto-based alternative investment management and development firm, said the deal will give it significant capital to reinvest. Montréal-based Fiera Capital Corp (TSX: FSZ), manager of Fiera Infrastructure, said the purchase marks the beginning of a new initiative it will undertake in partnership with Aquila Infrastructure Management.
Forum Equity Partners Signs Approximately $400 Million Definitive Agreement to Sell Part of its Canadian Public Private Partnership Portfolio
• Transaction provides Forum with significant reinvestment capital to continue supporting its growing PPP development business and substantially increase investment in the renewable energy sector.
• Forum to continue its role as long-term asset manager across the portfolio.
• The closing of Billy Bishop Toronto City Airport Pedestrian Tunnel, Surrey Pre-trial Services Centre Expansion and Quinte Consolidated Courthouse completed April 19, 2016.
April 20, 2016
TORONTO–(BUSINESS WIRE)–Forum Equity Partners (“Forum”) announced today that it has recently entered into a definitive purchase and sale agreement with Fiera Infrastructure (“Fiera Infrastructure”), a subsidiary of Fiera Capital Corporation (“Fiera Capital”) (TSX:FSZ) with respect to part of its Public Private Partnership (“PPP”) portfolio. The sale includes interests in five Canadian PPPs in the social and civil sector. Forum will retain its role as long-term asset manager across the Portfolio assets through its subsidiary, Forum Equity Partners Management Inc.
The transaction consists of the purchase of: i) 100% equity stake in the Billy Bishop Toronto City Airport Pedestrian Tunnel, the Surrey Pre-trial Services Centre Expansion, the Windsor South West Detention Centre, a social housing project in Western Canada; and ii) a 50% equity stake in the Quinte Consolidated Courthouse.
“We are very pleased to have completed this substantial transaction with Fiera Infrastructure, after receiving considerable international interest. This transaction represents the largest in a series of Forum’s planned sales and refinancing’s over the past 12 months. The transaction allows Forum to continue to grow our PPP development business and significantly increase our investments in the renewable energy sector,” said Richard Abboud, Founder and Chief Executive Officer of Forum Equity Partners.
The five, high-quality PPP infrastructure assets offer a broad array of critical public services and facilities across Canada.
The assets include:
• The Billy Bishop Toronto City Airport Pedestrian Tunnel project, completed in July 2015, involved the construction, operations and maintenance of a pedestrian tunnel connecting Billy Bishop Toronto City Airport to Toronto’s mainland. The tunnel provides passengers with convenient, predictable, and reliable access to the airport.
• The Surrey Pre-trial Services Centre Expansion was the Winner of the Canadian Council for Public Private Partnerships Gold Award in 2011, and consisted of the construction, operations and maintenance of a high security, state-of-the-art, 216-cell expansion to the existing Pre-Trial Services Centre in Surrey, British Columbia. The facility opened in October 2013.
• The Quinte Consolidated Courthouse project, opened in August 2013, involved a new courthouse built to consolidate the activities of four justice facilities in Belleville, Ontario and Trenton, Ontario.
• Windsor, Ontario’s new South West Detention Centre project involved construction of a state-of-the-art detention centre to replace an older facility. With the capacity to house 315 inmates, the centre opened in July 2014.
• The social housing project in Western Canada involves the design, renovation, financing, and maintenance of 13 single room occupancy buildings. With several sites already in operations, the project is on track to be completed by the third quarter of 2016.
Closing of the Billy Bishop Toronto City Airport Pedestrian Tunnel, Surrey Pre-trial Services Centre Expansion, and Quinte Consolidated Courthouse sale was completed on April 19, 2016. The South West Detention Centre and social housing project in Western Canada transaction are anticipated to occur later in 2016, upon satisfaction of certain conditions precedent and receipt of all required consents.
Macquarie Capital Markets Canada Ltd. (“Macquarie”) acted as exclusive financial advisor to Forum on the transaction.
About Forum Equity Partners
Forum Equity Partners is a privately owned alternative investment management and development firm with a focus on assets in renewable energy, infrastructure and real estate. Headquartered in Toronto, Ontario with offices in the U.S. and $1 billion in assets under management, Forum is committed to achieving aggressive growth through its investment in rapidly emerging new markets and industries with innovative, new investment approaches and programs.
For more information, please visit: www.forumequitypartners.com
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