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SNC-Lavalin sets up infrastructure partnership with European firm

Last Updated Jun 30, 2017 at 10:00 am EDT

MONTREAL – SNC-Lavalin (TSX:SNC) is shifting a collection of its Canadian infrastructure holdings to a new partnership with a European investment firm through a $208-million deal announced Friday.

The portfolio includes a hospital in Campbellton, N.B., a bridge in Kelowna, B.C., part of Vancouver’s SkyTrain rapid transit system and the Southeast Stoney Trail, a 25-kilometre segment of Alberta’s provincial highway system.

SNC says the portfolio also includes the Glen site of the McGill University Health Centre in Montreal.

The Montreal-based engineering and construction company will retain 20 per cent ownership in the assets through SNC-Lavalin Infrastructure Partners LP and continue to manage the infrastructure.

The other 80 per cent of the limited partnership will be owned by a Canadian subsidiary of BBGI SICAV SA, an investment company incorporated in Luxembourg and listed on the London Stock Exchange.

BBGI invests primarily in public-sector infrastructure that was built partly with private-sector investment.