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Financing for new long-term care home secured

Writer's picture: Ron GiofuRon Giofu
The land next to the Amherstburg Community Hub will be the home for a new long-term care facility.
The land next to the Amherstburg Community Hub will be the home for a new long-term care facility.

Another long-term care home for Amherstburg is finally moving forward after a funding agreement was announced last week.


According to a press release issued Jan. 27, the Building Ontario Fund has entered into an agreement in principle with Arch Corporation (Arch) to finance four new and redeveloped long-term care homes in rural communities across the province. 


One of the long-term care homes will be located in Amherstburg with the other three being in Lancaster, Prescott, and Tay Valley Township.


The release states: “The four long-term care homes were assessed as a group to balance their overall risk and financial profile, enabling the smaller homes, in Lancaster and Prescott, to be feasible to develop. Through this innovative bundling approach, the Building Ontario Fund is once again demonstrating its role as a catalyst in advancing high-priority infrastructure projects that would not otherwise proceed. Consistent with their mandate to invest alongside external capital, the Building Ontario Fund is partnering with a major Canadian financial institution to finance the suite of projects.”


The initial announcement of the Arch Corporation’s plans to build the new Amherstburg home came in February 2022. Now that financing is finalized, construction is expected to begin in the first half of 2025 and be complete by late 2027. That timeline is expected for all four long-term care homes.


 “As the demand for long-term care continues to grow, we’re proud to be working with the Building Ontario Fund to create much-needed beds for the province’s seniors,” said Daniel Argiros, CEO of the Arch Corporation. “The Building Ontario Fund’s partnership and investment will help ensure people across the province can get the care and support they need in modern homes located in the communities they’ve spent their lives in. We’re looking forward to the day when we can open our doors and welcome our residents home.”


When the original announcement was made in February 2022, Argiros stated “a combination of factors” led them to choose Amherstburg as the new home for Chateau Park Long-Term Care Home.


Since the 2022 announcement, the town has sold the eastern portion of the 320 Richmond St. property, which formerly was a large section of playground for St. Bernard School. The former building is now the Amherstburg Community Hub, but the new long-term care home will sit on property next to it at the corner of Richmond St. and Fryer St.


Arch Corporation purchased the land next to the hub from the Town of Amherstburg for nearly $900,000.


The new long-term care home will be larger than the one in Windsor that it is replacing and will accommodate 160 in total. That is an increase of 101 beds as compared to the 59 beds at its current location. 


The announcement from the Building Ontario Fund notes the four long-term care homes will collectively include 576 beds, addressing the growing demand in these communities. 


“Securing financing for projects in rural communities presents unique challenges, often due to their smaller scale,” said Michael Fedchyshyn, CEO, Building Ontario Fund. “Taking an innovative approach, as we have done by bundling four Arch properties together, we can bring institutional capital to the table and help advance vital infrastructure projects, like the long-term care homes in Amherstburg, Lancaster, Prescott, and Tay Valley.”


The Building Ontario Fund agreement in principle with Arch Corporation will result in 276 new and 300 redeveloped beds. 


Arch Corporation currently operates the only long-term care home in Lancaster. The new facility will be home to 128 seniors, an increase of 68 beds over the existing one.


In Prescott, the new home being built there will accommodate 128 residents, up by 68 beds from the existing facility. The investment in a long-term care home in Tay Valley Township will see the total number of beds rise from 121 to 160 in that community.


The Building Ontario Fund’s commitment includes a senior secured loan of $133.6 million to fund construction and operational costs across the four homes, subject to customary financial terms and conditions.


The Building Ontario Fund facilitates the development of critical infrastructure across the province by providing financing and advisory services to public sector pension plans, other trusted institutional investors, and Indigenous communities. It focuses on projects within five priority sectors - affordable housing, long-term care, energy, transportation, and municipal and community infrastructure. It is an arms-length, board-governed Crown agency enabled by the Building Ontario Fund Act.


Arch is a Canadian-based real estate asset manager that invests on behalf of pension plans, institutional investors, and family offices. Through their subsidiary, Riverdale Living, they operate 11 long-term care homes across Ontario.

Funding for new long-term care home secured

By Ron Giofu

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