Building Ontario Fund invests in four rural long-term care homes

Building Ontario Fund > News Release > Building Ontario Fund invests in four rural long-term care homes

Jan 27, 2025          

TORONTO – 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. The homes will be located in Amherstburg, Lancaster, Prescott, and Tay Valley Township.

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.

“Thanks to the Building Ontario Fund, Arch was able to secure the financing they needed to transform the future of long-term care for four rural communities,” said Peter Bethlenfalvy, Minister of Finance. “The new facilities will not only better serve seniors and enable more of them to remain close to their families and friends, but they will also have an impact on the communities beyond the walls of the home themselves.”

Collectively, the four long-term care homes will include 576 beds, addressing the growing demand in these communities. Construction is set to begin at all four facilities in the first half of 2025 and be completed by late 2027.

“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.”

Quick Facts

  • Through wholly owned subsidiary, Riverdale Living, Arch Corporation operates 11 long-term care homes across Ontario. Since 2016, Riverdale Living has been redeveloping C-class long-term care homes into modern A-class facilities.
  • The Building Ontario Fund agreement in principle with Arch Corporation will result in 276 new and 300 redeveloped beds. 
  • Amherstburg: The new long-term care home will be significantly larger than the one it is replacing, adding 101 new beds to its current 59 beds, accommodating a total of 160 residents.
  • Lancaster: Arch 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.
  • Prescott: Arch’s development in Prescott will represent the largest investment in the town’s history. The new home will accommodate 128 residents, up by 68 beds from the existing facility.
  • Tay Valley Township: The new long-term care home will increase the number of beds by 39, from 121 to 160.
  • 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 four-home bundle is another step toward meeting the Province’s target of a combined 58,000 new and redeveloped beds by 2028.

Quotes

“Our government is building Ontario’s long-term care capacity across the province. Thanks to funding from the Building Ontario Fund, these four homes will give 576 residents in rural communities a safe and modern place to call home.”

Paul Calandra, Acting Minister of Long-Term Care and Minister of Municipal Affairs and Housing

“This historic investment in Prescott will ensure that more seniors can remain close to the people and places they know and love. The new care home will provide a modern, supportive environment for residents and help more individuals transition to long-term care while staying connected to their community.”

— Steve Clark, Government House Leader and Member for Leeds-Grenville – Thousand Islands and Rideau Lakes

“With this latest investment in Tay Valley, Arch is demonstrating their ongoing commitment to our community.  The redevelopment of their existing long-term care home, Perth Community Care, will help meet growing demand for a modern, vibrant environment for seniors as they transition to long-term care.”

John Jordan, Parliamentary Assistant to the Minister of Agriculture, Food and Agribusiness and Member for Lanark–FrontenacKingston

“Arch’s latest investment in Amherstburg is a clear testament to their ongoing commitment to our community’s future. The new facility will offer our seniors a modern, supportive environment, while giving families peace of mind knowing their loved ones are in good hands.”

Anthony Leardi, Member for Essex

“Seniors are a vital part of our community. This investment will ensure our seniors can live in a modern, state-of-the-art home close to their loved ones, while accessing excellent care.”

  Nolan Quinn, Minister of Colleges and Universities and Member for Stormont–Dundas–South Glengarry

“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. 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.”

Dan Argiros, CEO, Arch Corporation

About the Building Ontario Fund

The Building Ontario Fund will facilitate 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. 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.

About Arch

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.

For further information:

Building Ontario Fund

Lynsey Wynberg

lynsey.wynberg@buildingonfund.ca