Chartwell REIT Extends Mezzanine Financing To Three Seniors Housing Development Projects.

MISSISSAUGA, Ontario -- Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today that it would extend approximately $4.0 million in mezzanine financing to Spectrum Seniors Housing Development LP for the construction and development of three seniors housing facilities with a total project cost of approximately $68 million. These developments will launch the new Chartwell House and Chartwell Classic brands, upscale independent living and light care concepts appealing to today's discerning seniors.

In Etobicoke in the west end of Toronto, Spectrum, in joint venture with Jack Winberg and the Rockport Group, will be developing a modern nine-storey retirement residence containing 206 deluxe independent living and light care suites. Situated near a park and with access from Eglinton Avenue, the facility will fill the strong demand in this wealthy and mature residential neighbourhood. Chartwell will loan Spectrum $2.8 million at an annual interest rate of 10% and will also receive a $1.05 million development fee. The total project cost will be approximately $42 million.

Chartwell Classic-Constantia will be a 119 suite five-storey modern retirement residence in Thornhill, Ontario. Chartwell will increase its mezzanine financing to Spectrum by $795,000 so that a fifth floor can be added to the residence which is already under construction. The annual interest rate on the mezzanine financing will also be at 10%. Spectrum's joint venture partner for this project is a large Toronto-based real estate developer. The total project cost will be approximately $18.0 million.

Chartwell House-Mission will be a 53-suite independent living facility adjacent to Carrington House in Mission B.C., which was acquired by Chartwell in September 2004. Construction is expected to begin in June 2005 and be completed the following May. Chartwell will loan $623,000 in mezzanine financing to Spectrum at an annual interest rate of 10% and will also receive a $102,625 development fee for services rendered during the development and construction of the project. Spectrum's joint venture partner on this project is Eldon Unger, a local Fraser Valley developer. The total project cost will be approximately $8.3 million.

Chartwell will acquire Spectrum's 50% interest in the above three residences at a discount to appraised value once the facility is fully operational and stabilized. Chartwell will manage the properties for a management fee of 4% of gross revenues.

"Through our relationship with Spectrum we now have access to more than 3,600 suites currently under development in major centres across the country. This considerable pipeline of future acquisitions will further enhance the overall quality of our portfolio, expand our presence in our target markets, and increase cash flow for our unitholders," commented Stephen Suske, Vice Chair and President.

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)