Lexpert®Ranked Lawyers
Bain, Mark W.S.
Torys LLP
(416) 865-7349
mbain@torys.com
Mr. Bain has acted on
over 50 major PPP
and AFP transactions,
including Ottawa
LRT, Vancouver
SRO, Windsor Essex
Parkway, Mackenzie
Valley Fibre Link,
Regina Wastewater
and Women's
College Hospital. He
is a Director of the
Canadian Council
for PPP.
Barnes, Jeff
Borden Ladner
Gervais LLP
(416) 367-6720
jbarnes@blg.com
Mr. Barnes's Canadian
experience includes
the acquisition and
fi nancing of 407
ETR, privatization of
Canadian National
Railway through a
cross-border offering,
investment in Bruce
Power and the
Toronto Waterfront
Revitalization
Task Force.
Bauer, Robert T.
Davies Ward Phillips
& Vineberg LLP
(416) 863-5552
rbauer@dwpv.com
Mr. Bauer specializes
in domestic and
international
infrastructure projects,
PPPs, project
fi nancing, property
development and joint
ventures. Projects
include hospitals,
transit projects, urban
redevelopment, and
government and
mixed-use projects.
Barber, QC, Darryl J.
Bennett Jones LLP
(403) 298-3001
barberd@
bennettjones.com
Mr. Barber is a
senior commercial
real estate lawyer
acting for developers
and institutional
clients exploring
PPP opportunities.
Advises on planning
strategies, property
value maximization,
purchases and sales,
fi nancing and
joint ventures.
Barry, QC, T. Arthur
Stewart McKelvey
(902) 420-3364
abarry@
stewartmckelvey.com
Mr. Barry has a wide-
ranging practice
in construction
law focused on
construction contracts,
procurement law and
mediation/arbitration of
construction disputes.
He is a Fellow of the
Canadian College of
Construction Lawyers.
Beagan Flood,
Catherine
Blake, Cassels &
Graydon LLP
(416) 863-2269
cbe@blakes.com
Ms. Beagan Flood's
practice includes
civil and commercial
litigation involving
privacy, confi dentiality,
administrative law
and other matters.
Finance | 7
in Montreal. " e big trend is that the number of these deals
is going to increase."
As solid returns have become more diffi cult for institu-
tional investors to achieve, infrastructure emerged as a more
attractive asset class for their investment portfolios. Canadi-
an P3 projects off er the combination of long-term cash fl ow
on an operating asset in a stable country — and a return that
greatly exceeds that of other asset classes.
A majority of P3 projects change hands a er fi ve years,
says McIver. " ere's signifi cant money to be made on the
refi nancing of a project once most of the risk factors have
been eliminated through the construction period. en it's
a revenue stream going forward."
THE EQUITY MARKET
Canada's secondary market for P3 projects is older and more
evolved for debt than equity. But lately there's been an in-
crease in the sale of equity positions, whether in their en-
tirety or individual members of the initial consortium selling
their stake. (Typically, equity accounts for 10 to 20 per cent
of a P3's fi nancing.)
According to data presented at the annual conference
last June of the Canadian Council for Public-Private Part-
nerships (CCPPP), over 20 equity sales were publicly an-
nounced since 2005.
London-listed infrastructure funds were the acquirers
in 12 of the deals, pension funds in eight (though not Ca-
nadian pension funds, which have tended to buy equity of
overseas infrastructure).
Five of the transactions occurred before fi nancial close,
six during construction and the rest during the operational
phase of the projects.
Recent moves by the global engineering fi rms SNC-Lava-
lin and Bilfi nger Berger to divest their concession portfolios
have been adding to the deal fl ow.
In May of this year, SNC-Lavalin sold AltaLink, Alberta's
largest regulated electricity transmission company, to War-
ren Buff ett's Berkshire Hathaway Energy for $3.2 billion.
SNC said then that it has two dozen other infrastructure
stakes that it plans to sell. e largest is its 16.7 per cent eq-
uity position in the 407 ETR — the toll highway just north
of Toronto.
Why the turnover of equity investors?
Most P3 projects have negative income fl ow for the fi rst
years of what is usually a 25- to 30-year life cycle. If the ini-
tial investors don't have other gains to off set those losses, says
