The Toronto South Detention Centre (TSDC) P3 Project reached financial close on 26 October, 2009. The TSDC will be a 1650 bed high security prison and also comprises the construction of the Toronto Intermittent Centre alongside TSDC.
The Toronto Intermittent Centre will be a minimum security facility used primarily to house inmates serving weekend sentences. The project aims to reduce inmate overcrowding in the Greater Toronto area while maintaining high security standards using state of the art technology. The capital value of the project is CAD$347 million.
The project will be financed by CAD$34 million of equity and CAD$306 million of senior debt provided by the lenders Calyon, Banco Espirito Santo de Investimento, Norddeutsche Landesbank Girozentrale, Bank of Montreal, Sun Life Assurance Company of Canada and the Canada Life Assurance Company.
Construction of the Toronto Intermittent Centre is expected to be completed in March 2011, with construction of TSDC expected to finish in September 2012. The consortium will be responsible for operating and maintaining the prison until the end of concession in September 2042.
The procuring authority for the project is Infrastructure Ontario, while the consortium undertaking the project is Integrated Team Solutions, which comprises Fengate Capital Management and EllisDon Corporation, with RBC as financial advisers.
Operis performed financial model due diligence in support of the consortium’s successful bid and at financial close stage.