TORONTO – The Building Ontario Fund (BOF) has reached financial close on an agreement with Arch Corporation (Arch) that bundles four loans to redevelop and expand long-term care (LTC) homes in smaller communities in Ontario. Manulife financed the project in partnership with BOF to help accelerate priority infrastructure development in the province.
“Attracting institutional capital to finance high-impact infrastructure investments is one of the reasons the Building Ontario Fund was created,” said Peter Bethlenfalvy, Minister of Finance. “This partnership will help ensure more residents in rural Ontario have access to the care they need, close to family and the communities they know.”
The financing includes four loans totalling $265.5 million, split evenly between BOF and Manulife, to support construction costs for much-needed LTC homes in small communities. Bundling the four homes enabled the inclusion of smaller projects that would not otherwise have been built. This approach not only balanced risk and scale but also enabled third-party capital to invest in the Arch homes alongside BOF.
“In partnership with Manulife, our bundling strategy allowed us to deliver more long-term care beds across the province than would have been feasible using solely market-based financing,” said Michael Fedchyshyn, CEO of the Building Ontario Fund. “We expect to build upon this financing model and secure further interest from institutional lenders and other partners interested in developing long-term care infrastructure.”
“Bringing additional scale to long-term care housing in markets that need alternative and additional beds is a compelling investment for the communities, and it is an exciting and rewarding project to participate in alongside the Building Ontario Fund,” said Manulife’s Bruce Anderson, AVP Project Finance & Infrastructure.
“We’re proud to be working with the Building Ontario Fund and Manulife to bring these much-needed homes to life,” said Dan Argiros, CEO of Arch Corporation. “This partnership is a model for how public and private capital can come together to serve the public good.”
“We are rapidly building capacity across the province, and thanks to financing secured by the Building Ontario Fund, the 576 beds to be updated or added to these four communities support our goal of delivering 58,000 new and redeveloped long-term care beds by 2028.”
— Natalia Kusendova-Bashta, Minister of Long-Term Care
“As the largest investment in Prescott, this project will ensure that more residents remain close to the people and places they know and love.”
— Steve Clark, Government House Leader and MPP for Leeds-Grenville-Thousand Islands and Rideau Lakes
“With this investment, Tay Valley will benefit from the redevelopment of Perth Community Manor and help us meet the growing demand for a modern, vibrant environment for residents as they transition to long-term care.”
— John Jordan, MPP for Lanark—Frontenac—Kingston
“With the ongoing commitment of Arch and BOF bringing investors to the table, residents in the Amherstburg community will see the development of a modern, supportive environment.”
— Anthony Leardi, MPP for Essex
“This investment will ensure our residents can live in a modern, state-of-the-art home close to their loved ones.”
— Nolan Quinn, Minister of Colleges and Universities and MPP for Stormont–Dundas–South Glengarry
The Building Ontario Fund (BOF) plays a critical role in advancing infrastructure development in Ontario by catalyzing investment in priority projects. Using sustainable and innovative financing solutions and partnering with external capital, including institutional investors and Indigenous partners, BOF is unlocking opportunities to bring high impact infrastructure projects to life. To address the province’s most immediate needs, the Building Ontario Fund is focused on projects within five priority sectors: affordable housing, long-term care, energy, transportation, and municipal and community infrastructure. An arms-length, board-governed Crown agency enabled by the Building Ontario Fund Act, 2024, the Building Ontario Fund is helping to build a stronger province for Ontario’s quickly growing population and lay a strong foundation for future generations.
Manulife Financial Corporation is a leading international financial services provider, helping our customers make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we operate as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States, providing financial advice and insurance for individuals, groups and businesses. Through Manulife Wealth & Asset Management, we offer global investment, financial advice, and retirement plan services to individuals, institutions, and retirement plan members worldwide. At the end of 2024, we had more than 37,000 employees, over 109,000 agents, and thousands of distribution partners, serving over 36 million customers. We trade as ‘MFC’ on the Toronto, New York, and the Philippine stock exchanges, and under ‘945’ in Hong Kong. Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.
Arch is a Canadian-based real estate asset manager that invests on behalf of pension plans, institutional investors, and family offices. Through their wholly owned affiliate, Riverdale Living, they own 11 long-term care homes across southern Ontario.
Building Ontario Fund
Lynsey Wynberg
lynsey.wynberg@buildingonfund.ca