MISSISSAUGA, ON, March 3, 2020 /CNW/ - Chartwell Retirement Residences ("Chartwell") (TSX: CSH.UN) announced today that it completed the acquisition of a 42.5% interest in Chartwell Le St-Gabriel résidence pour retraités ("Chartwell Le St-Gabriel") from its development partner, Batimo Inc. ("Batimo"). Welltower Inc. ("Welltower") (NYSE: WELL), also acquired a 42.5% interest in the property, and Batimo will retain a 15.0% interest.
Chartwell Le St-Gabriel is a 345-suite residence offering 313 independent living and 21 assisted living suites in Saint-Hubert, Quebec. Developed by Batimo and managed by Chartwell, the residence opened in May 2018 and is currently 97% occupied.
The purchase price for Chartwell's 42.5% interest was $37.9 million and was settled by the assumption of the existing mortgage of $23.9 million, at Chartwell's share, settlement of Chartwell's mezzanine loan of $3.6 million, with the balance paid in cash. Chartwell will continue to manage the property under the incentive-based management contract.
"We are pleased to grow our partnerships with Welltower and Batimo with this new, high-quality, well-located residence in a strong market. The successful lease-up of this residence is a testament to the outstanding work of Chartwell's and Batimo's teams in designing, developing and operating this property. We are looking forward to many years of delivering exceptional resident experience and quality care at Chartwell Le St-Gabriel," commented Vlad Volodarski, Chartwell's Chief Financial Officer and Chief Investment Officer.
Committed to delivering exceptional resident experience and operational excellence, Chartwell is home to over 25,000 residents across Canada and employs over 15,000 staff dedicated to Chartwell's vision of Making People's Lives Better.
Chartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a complete range of seniors housing communities, from independent supportive living through assisted living to long term care. It is the largest operator in the Canadian seniors living sector with over 200 quality retirement communities in four provinces. Chartwell is committed to its vision of Making People's Lives BETTER and to providing a happier, healthier and more fulfilling life experience for its residents. For more information, visit www.chartwell.com.
FORWARD LOOKING INFORMATION
This press release contains forward-looking information that reflects the current expectations, estimates and projections of management about the future results, performance, achievements, prospects or opportunities for Chartwell and the seniors housing industry. Forward-looking statements are based upon a number of assumptions and are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. These factors are more fully described in the "Risks and Uncertainties" section in Chartwell's 2019 MD&A and in materials filed with the securities regulatory authorities in Canada from time to time, including but not limited to our most recent Annual Information Form.
SOURCE Chartwell Retirement Residences
For further information: Chartwell Retirement Residences, Vlad Volodarski, Chief Financial Officer and Chief Investment Officer, Tel: (905) 501-4709, [email protected]
Chartwell is an unincorporated, open-ended trust which indirectly owns and operates a complete range of seniors housing communities from independent supported living through assisted living to long term care. It is the largest owner and operator of seniors residences in...