Chartwell REIT Completes Mezzanine Financing Transactions.

MISSISSAUGA, Ontario -- Projects to Develop Three Quebec Properties and One B.C. Retirement Facility

Chartwell Seniors Housing Real Estate Investment Trust (TSX - CSH.UN) announced today that it would extend mezzanine financing of approximately $1.93 million to Spectrum Seniors Housing Development LP and Chartwell's joint venture partner Melior Development Inc. for the expansion and lease-up of three projects in Quebec. The total development cost of these three projects is approximately $22 million.

The first is the construction of a new wing of 97 suites at Le Monastere d'Aylmer, a prestigious retirement home housed in an architecturally rich former monastery. Estimated completion is June of 2006. The second project is the expansion of La Residence Principale in downtown Cowansville, Quebec to add 56 new suites to this 145-suite facility by May 2006. The third project will convert the retirement home Le Manoir Cowan, also situated in Cowansville, into a center for Alzheimer patients to be opened in August 2005.

Chartwell will earn interest on its mezzanine financing in the range of 10% and 14%, depending on the project, and receive a development fee of 2.5% of total development costs. Furthermore, CM Management LP, the management company co-owned by Chartwell and Groupe Melior Inc., will generate a management fee of 4% of gross revenues once the projects are completed. Chartwell will have the option to ultimately acquire all of these properties.

"We are pleased to be extending our relationship with Melior, one of the most respected names in the Quebec seniors housing industry," commented Stephen Suske, Chartwell's Vice Chair and President. "We look forward to building our presence in Quebec through this joint venture as we capitalize on the significant demand for Melior's unique properties and approach to the business."

Melior has developed a market niche in rejuvenating large, well-built and well-located properties belonging to religious orders. Melior acquires and redesigns the properties, and leases a portion of the new and updated space to the religious order to house and care for their senior members. The majority of the property is then offered as retirement living to local seniors who value the spiritual culture of the residence's setting and the comfort and support of the community in which they live.

"Chartwell has proven to be an excellent partner, sharing our commitment to providing the highest levels of care and support for our residents," added Jean Maynard, Chairman and CEO of Groupe Melior Inc.

Chartwell also announced today that it would extend to MacLean Homes Ltd. mezzanine financing of approximately $1.4 million to develop a 96-suite light care retirement residence in North Vancouver, British Columbia. The total development cost of this project is approximately $18.5 million.

MacLean Homes Ltd is the 50/50 joint venture partner with Spectrum in this project and another previously announced project in Kelowna B.C. Mezzanine financing for Spectrum's 50% interest in this project had been included in the REIT's initial public offering prospectus, but zoning approvals had been delayed.

Since the IPO, the joint venture has been successful in being awarded for the project 37 provincially funded beds, which will allow the project to achieve operational breakeven, quicker than planned. Chartwell will have the option to acquire 100% of the property once it is completed and stabilized. Chartwell will earn 12% interest on its mezzanine financing, receive a $445,000 development fee, and generate a management fee of 4% of gross revenues once the facility opens in October 2005.

"With this transaction, we are continuing to develop our relationship with MacLean Homes Ltd., an experienced and successful construction and development company with over 25 years of experience in the lower mainland of British Columbia," stated Robert Ezer, Chartwell's Chief Executive Officer. "We look forward to further extending our presence in this strong market region through this important partnership."

Chartwell REIT is a growth-oriented investment trust owning and managing a complete spectrum of seniors housing properties in selected centres across Canada. Focused solely on the Canadian marketplace, Chartwell REIT is currently the second largest participant in the Canadian seniors housing business. Chartwell REIT will capitalize on the strong demographic trends present in its markets to grow internally and through accretive acquisitions. Chartwell REIT also has an exclusive option to purchase stabilized facilities from Spectrum Seniors Housing Development LP, a seniors housing development company.

Chartwell's Distribution Reinvestment Plan (DRIP) allows Unitholders to have their monthly cash distributions used to purchase Trust Units without incurring commission or brokerage fees, and receive bonus Units equal to 3% of their monthly cash distributions. More information can be obtained at www.chartwellreit.ca

Certain statements contained in this news release may include forward-looking information with respect to Chartwell Seniors Housing Real Estate Investment Trust's operations and future financial results. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements.These uncertainties and risks include, but are not limited to, availability of resources, competitive pressures, changes in market activity and regulatory requirements.Further information can be found in the disclosure documents filed by Chartwell Seniors Housing Real Estate Investment Trust with the securities regulatory authorities, available at www.sedar.com.

Chartwell Seniors Housing REIT (TSX:CSH.UN)