14:00:39 EDT Tue 27 Sep 2022
Enter Symbol
or Name
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CA



Chartwell Retirement Residences Real Estate I
Symbol CSH
Shares Issued 234,733,735
Close 2022-08-12 C$ 11.21
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Chartwell to sell two long-term care homes for $112M

2022-08-12 17:19 ET - News Release

Mr. Vlad Volodarski reports

CHARTWELL ENTERS INTO AGREEMENTS TO SELL ITS INTERESTS IN TWO LONG TERM CARE RESIDENCES IN BRITISH COLUMBIA

Chartwell Retirement Residences Real Estate Investment Trust has entered into agreements to transition, subject to required approvals, its ownership of two long-term care (LTC) homes in British Columbia with 264 beds to AgeCare Health Services Inc., and Axium Infrastructure Inc. and its affiliates.

The combined value of this transaction, before closing costs and customary adjustments, is $112-million, with net proceeds to Chartwell after property-specific debt, taxes and closing cost estimated at approximately $56.8-million.

"Chartwell's experienced and dedicated long-term care team at these homes has a long and successful history of delivering quality care to our residents," said Vlad Volodarski, Chartwell's chief executive officer. "Substantial growth in our retirement portfolio over the years and our recently announced transition of the Ontario LTC platform has led us to the decision to sell these LTC residences in British Columbia. It was critical that these properties be sold to a strong and reputable organization which holds similar values to Chartwell to ensure a smooth transition for our residents and employees. Our experience working with AgeCare and Axium as the transition of our Ontario LTC platform further strengthened my confidence that they are exactly the right partners to continue the legacy of Chartwell's long-term care operations at these homes. We are committed to work closely with AgeCare, Axium and all our stakeholders to ensure a smooth and successful transition."

Transaction details

The purchase price for the two LTC homes before transaction costs and customary adjustments is $112-million. The purchasers will assume or repay the existing property-specific debt, with an estimated balance at Dec. 31, 2022, of $41.9-million, bearing a weighted average interest rate of 3.25 per cent.

Subject to required approvals, Chartwell expects this transaction to close in 2022.

Chartwell expects, subject to market conditions, to use net proceeds from this transaction, estimated at $56.8-million, to repay credit facilities which have been used to finance growth and developments.

About Chartwell Retirement Residences Real Estate Investment Trust

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 190 quality retirement communities in four provinces, including properties under development. 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.

We seek Safe Harbor.

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