MISSISSAUGA, ON , Aug. 12, 2022 /CNW/ - Chartwell Retirement Residences ("Chartwell") (TSX:CSH.UN) announced today that it 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. ("AgeCare") and Axium Infrastructure Inc. and its affiliates ("Axium").
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 is 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 furthers 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 December 31, 2022 of $41.9 million, bearing a weighted average interest rate of 3.25%.
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 fund growth and developments.
About Chartwell
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. For more information, visit www.chartwell.com
About Axium Infrastructure Inc.
Axium Infrastructure (comprised of Axium Infrastructure Inc. and its affiliated entities) is an independent portfolio management firm dedicated to generating long-term investment returns through investing in core infrastructure assets. Axium Infrastructure had approximately C$9.4 billion in assets under management as of June 20, 2022, as well as approximately C$1.7 billion in co-investments. The firm benefits from the capabilities of a group of specialists with decades of experience acquiring, developing, financing, operating and managing infrastructure assets. Focus is placed on assets that are supported by robust market demand and under long-term contract with creditworthy counterparties. Since 2010, the firm has invested in a diversified portfolio of over 250 North American infrastructure assets.
About AgeCare
Founded in 1998 by two physicians, AgeCare is dedicated to providing seniors housing options based on a "living in place" philosophy. They are deeply committed to creating vibrant seniors communities that celebrate and support aging with dignity, independence and community interaction. AgeCare currently operates 22 seniors Long Term Care and Supported Living communities in Alberta and British Columbia, offering resident-centric high-quality care and services through their long-term care, supportive living, mental health, hospice, and adult day programs.
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 "COVID-19 Business Impacts and Related Risks" section, and the "Risks and Uncertainties and Forward-Looking Information" section in Chartwell's 2021 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.
For more information, please contact:
Chartwell Retirement Residences
Jonathan Boulakia, Chief Investment Officer and Chief Legal Officer
Tel: (905) 501-9219
jboulakia@chartwell.com
SOURCE Chartwell Retirement Residences
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