Chartwell REIT To Purchase Quebec Property Portfolio And Ottawa Retirement Home.
Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today that it has acquired Cite-Jardin, a multi-phase retirement complex situated in Gatineau, Quebec. Phase 1 of the project consists of a 149-suite fully occupied independent living facility, which has been in operation since December 2001, and Phase 2, a 135-suite facility (with a common area link), which opened in July, 2004 with 99% of the suites currently rented.
The transaction price of $36.2 million is to be paid in two installments; a first payment on the closing of Phase 1 for $16.5 million and a subsequent payment of $19.7 million upon the move-in date of the final resident. The project also includes future plans for another 100-suite independent living residence as well as a 150-unit long-term care facility and 32 townhouse units.
"We are pleased to add these quality seniors residences to our growing portfolio, and will be examining the opportunity to acquire a number of other quality properties from this successful developer in the future," commented Stephen Suske, Chartwell's Vice Chair and President. "Combined with our recent purchase of 1,032 suites and joint-venture relationship with Groupe Melior, these new acquisitions further strengthen our presence in the Province of Quebec."
Chartwell also announced today that it had acquired a 50% interest in Brookside Manor, an 85-suite retirement home situated in Kanata in the west Ottawa market for a purchase price of $3.825 million. Chartwell retains an option to acquire the remaining 50% after two years.
"There is an opportunity to generate significant value with this new property as we reposition and convert the home into our innovative light care model," stated Robert Ezer, Chief Executive Officer. "With this program, a single guest attendant provides the majority of services to our seniors. Residents are comforted because they are having their needs met by the same familiar face, while unitholders benefit from the considerable efficiencies generated by this proven business model."
Finally, Chartwell announced today that it had provided $1.425 million in mezzanine financing to Spectrum Seniors Housing Development LP, representing 50% of the financing to develop the 138-suite Riverside Retirement Village, an independent seniors residence in London Ontario. Chartwell will receive interest of 14% on its mezzanine financing, as well as a development fee of $475,000 and a management fee of $178,000 when the project becomes operational. Chartwell has the option to purchase the property when operational and fully stabilized, scheduled for June 2007.
"We look forward to increasing our presence in the strong southwestern Ontario market," Mr. Suske concluded.
Financing for these acquisitions and mezzanine financing will come from Chartwell's available credit facilities.
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 http://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 http://www.sedar.com.