Ontario Construction News staff writer
The Building Ontario Fund has entered into an agreement in principle with The Rekai Centres to finance the development of Rekai Centre at Cherry Place, a 13-storey, not-for-profit long-term care facility in downtown Toronto.
The new home will provide 348 beds for residents in a high-needs area and include a range of medical and support services for the broader community. Construction is expected to begin in the first quarter of 2025, with the facility slated to open to residents by December 2027.
The project is the first to receive financing through the Building Ontario Fund and will receive up to $176.1 million in support, including a construction loan and, subject to conditions, a long-term loan after completion. The Rekai Centres has also reached an agreement in principle for additional financing from a major Canadian bank, in line with the fundโs mandate to invest alongside institutional capital.
The architect for the project is Montgomery Sisam Architects, a Toronto-based firm known for its work in healthcare and civic architecture. The 13-storey building will feature a state-of-the-art design, including dedicated dementia care floors, a dialysis clinic, a Rainbow Wing for LGBTQ2S+ seniors, and an education centre for training healthcare professionals. The facility’s design also incorporates sustainability features, aiming for LEED Gold certification and meeting Toronto Green Standards Tier 2.
Turner & Townsend has been named as the construction manager for the project. The firm will oversee the construction of the facility, which is expected to begin in early 2025 and be completed by late 2027. The project represents a significant step in addressing the high demand for long-term care in downtown Toronto.
โThe Building Ontario Fundโs investment in Rekai Centre at Cherry Place marks an important step forward in our commitment to finance new infrastructure in Ontario and support the development of a resilient long-term care system,โ said Peter Bethlenfalvy, Ontarioโs finance minister. โWhen we launched the Building Ontario Fund, this is the kind of transformative initiative we had in mind โ one that makes a meaningful difference in our communities.โ
Located at Eastern Avenue and Cherry Street, the facility will include 222 new and 126 redeveloped long-term care beds. The building will also offer medical services to the community, including a dialysis clinic and a hands-on training centre for personal support workers, registered nurses, and other healthcare professionals.
โRekai Centre at Cherry Place is a prime example of how the Building Ontario Fund is driving development of vital infrastructure in Ontario by working hand-in-hand with institutional capital and great partners like The Rekai Centres,โ said Michael Fedchyshyn, chief executive officer of the Building Ontario Fund. โThe concept of Cherry Place has been in development for a long time, but progress was stalled due to a combination of factors, including financing challenges. With the Building Ontario Fundโs investment, the project is able to move from vision to reality.โ
Paul Calandra, acting minister of long-term care, said the announcement represents a major milestone for healthcare development in the city.
โIt gives me immense pleasure to announce that The Rekai Centre at Cherry Place project is open for construction,โ Calandra said. โOur government is building Ontarioโs long-term care capacity and we are building it where it is needed. Today marks an important milestone for the expansion of long-term care in the city of Toronto.โ
Sue Graham-Nutter, chief executive officer of The Rekai Centres, said the funding agreement allows the long-planned facility to finally move forward.
โThe demand for long-term care beds, especially among the cityโs most vulnerable populations, is critical,โ Graham-Nutter said. โTodayโs announcement has been a long time in the making, and with the Building Ontario Fundโs help, we are delighted to finally be able to expand our capacity and ensure more of our communityโs seniors can receive the care and support they deserve.โ