Chartwell REIT Expands Presence in British Columbia.

MISSISSAUGA, Ontario -- Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today that it would be acquiring one independent living retirement residence in British Columbia and extending mezzanine financing to another BC development.

Carrington Place is a 72-suite retirement residence located in Vernon, a popular retirement location situated in British Columbia's Okanagan Valley. Chartwell will be acquiring 100% of this modern facility for approximately $8.0 million, including the purchase of one acre of adjacent land with approved zoning for expansion. When the REIT determines market conditions are appropriate for a new development, this adjacent land will be an internal growth opportunity for the REIT. Management expects to close the transaction on May 31, 2005.

Chartwell will also be extending approximately $1.87 million in mezzanine financing to a partnership between Spectrum Seniors Housing Development LP and MacLean Homes Ltd. to develop an 88-suite independent living retirement residence on land adjacent to the REIT's Willow Manor in Maple Ridge, British Columbia. Chartwell will receive interest at 10% per annum as well as a consulting, structuring and placement fee of $93,600 and a development fee of approximately $305,000. The REIT will also receive management fees of approximately $96,500 per annum once the facility is stabilized.

It is expected the Maple Ridge project will be completed and fully stabilized by September, 2007, at which time Chartwell will have the option to purchase both Spectrum's and MacLean's interests in the facility.

"We are pleased to be strengthening our presence in British Columbia, one of the strongest markets for retirement residences in the country," commented Stephen Suske, Vice Chair and President. "The Vernon investment is also our first in the beautiful Okanagan Valley, a destination of choice for Canadian seniors."

Chartwell also announced today that it would be increasing its mezzanine financing loan by approximately $234,000 to its Quebec partner, Le Groupe Melior, for the development of the Aylmer Phase IV project. The total mezzanine loan for the project will now be $1.1 million after the increase is advanced. These funds will be used to create a more upscale environment, larger suites, and the addition of an indoor swimming pool to the facility.

Chartwell REIT is a growth-oriented investment trust owning and managing a complete spectrum of seniors housing properties, and 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 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)