Chartwell to Acquire Property From Development Partner.MISSISSAUGA, Ontario For the First Nation, see . Mississauga (pronounced: [ˌmɪsɪˈsɑgə] listen -- SPECTRUM SENIORS HOUSING DEVELOPMENT LP ALSO ANNOUNCES NEW $17.5 MILLION EQUITY FINANCING Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. Chartwell Seniors Housing Chartwell Seniors Housing REIT (TSX: CSH.un) is a real estate investment trust in Canada that was founded in 1999. It operates seniors housing properties in six of Canada's provinces and four in The United States. Real Estate Investment Trust (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :CSH csh - C shell .UN) announced today that it had acquired the Jackson Creek Jackson Creek is a stream in Amador County, California, which is linked to gold mining during the California Gold Rush era. There is a modern controversy associated with proposal of a water pipeline by the Amador Water Agency, which facility could detract from the flow on Jackson Retirement Home from its development partner, Spectrum Seniors Housing Development LP ("Spectrum"). In the two years since its inception, Spectrum has become Canada's largest and fastest growing developer of seniors housing. Jackson Creek is a modern 68-suite facility situated close to the downtown core
The Downtown Core is a 266-hectare urban planning area in the south of the city-state of Singapore. of Peterborough in the heart of Ontario's scenic cottage country. Chartwell has been managing the property since its initial public offering in November 2003, and has increased occupancy to its current stabilized level of 96%. Chartwell purchased 100% of the property for a total cost of $9.1 million including the assumption of first mortgage debt, the repayment of the existing $3.1 million in mezzanine financing Mezzanine Financing A hybrid of debt and equity financing. Mezzanine financing is typically used to finance the expansion of existing companies, and it is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the that had been extended by Chartwell, cash and the issuance of approximately $0.8 million in Chartwell Class B Master Care LP units. The transaction closed in November, 2005. Spectrum also announced today a new common share issue with total proceeds of $17.5 million. The transaction will close later this month. The funds from the share offering will be used to repay $2.5 million in preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. invested at Spectrum's inception, reduce its existing operating credit line and finance future growth. Chartwell has an exclusive development agreement to purchase seniors housing facilities from Spectrum at a discount to market value once the properties are fully developed and stabilized. To date Chartwell has acquired six facilities from Spectrum for a total cost of approximately $71.8 million, adding 430 brand new, high quality suites to its portfolio, all designed to Chartwell's exacting standards. Currently Spectrum has a total of 3,941 suites under development in major markets across Canada, including 690 suites in their final lease up phase. With the proceeds of this new equity financing, Spectrum will be well positioned to develop an additional seventeen new projects totaling more than 2,000 suites. "We continue to expand the size and scope of our portfolio with the addition of brand new, fully stabilized facilities developed by our partner Spectrum. With the completion of its new equity financing, we are confident Spectrum's development pipeline will continue to grow, providing Chartwell with a significant source of new acquisitions for the benefit of our Unitholders," Mr. Suske concluded. Chartwell REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). is a growth-oriented investment trust owning and managing a complete spectrum of seniors housing properties. It is currently the second largest participant in the Canadian seniors housing business with a growing presence in the United States. Chartwell 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 reinvestment plan See dividend reinvestment plan (DRIP). (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) |
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