MISSISSAUGA, ON, Aug. 29,
2024 /CNW/ - Chartwell Retirement Residences
("Chartwell" or the "Trust") (TSX: CSH.UN) announces that it has
entered into definitive agreements for acquisitions of three modern
retirement residences on Vancouver Island totaling 384 suites for
an aggregate purchase price of $226.9
million, consisting of:
- The 152-suite Vista Retirement Residence ("Vista"), located in
Victoria, built in 2023, which
offers a continuum of care with independent supporting living
("ISL"), assisted living and memory care services.
- Nanaimo Memory Care ("Nanaimo MC"), located in Nanaimo, built in 2018, comprised of 77
suites; and
- The Edgewater Retirement Residence ("The Edgewater"), located adjacent to the Nanaimo
MC, currently under construction, which will be comprised of 155
suites offering ISL services. Chartwell will acquire the residence
upon construction completion, which is expected in Q2, 2025.
Vista is an upscale residence located in the charming
Victoria suburb of Esquimalt, within walking distance to numerous
retail and service amenities. The 11 storey residence
currently offers a continuum of care, with 104 ISL suites and 48
memory care suites. The residence boasts large and well-appointed
common areas, and beautiful ocean views. The residence is currently
28% occupied. The gross purchase price for the Vista is
$103.9 million, of which $9.2 million will be held in escrow to support
vendors' obligation under a 24-month Net Operating Income ("NOI")
Guarantee.
Nanaimo MC is located in the north end of the City of Nanaimo on Long Lake. The area offers
a serene backdrop and easy access to retail, medical care and
entertainment amenities. The residence provides memory care
services and is currently 88% occupied. The purchase price for the
Nanaimo MC is $20.3 million.
Chartwell expects the closing of the Vista and Nanaimo MC
acquisitions to occur in Q4, 2024.
The Edgewater, located adjacent
to Nanaimo MC and currently under construction, will be comprised
of 155 ISL suites with ample and modern amenities. Construction is
expected to be completed in Q2, 2025, at which point Chartwell will
acquire the residence. The gross purchase price for The
Edgewater will be $102.7 million of which $8.7 million will be held in escrow to support
vendors' obligation under the 36-month NOI Guarantee.
Chartwell expects to fund these transactions through a
combination of net proceeds from the sales of its non-core assets,
cash on hand, and its credit facilities.
"These acquisitions of high quality, newly developed residences
will positively contribute to the overall quality of Chartwell's
portfolio and expand our presence in the strong British Columbia market. These transactions
will create meaningful scale on Vancouver Island, which provides
operating and management synergies. We believe the quality of the
acquired properties and their excellent locations, combined with
our operating expertise, will support successful lease up and
multiyear occupancy and market rate growth. We are pleased to
acquire these properties in Canada's retirement destination below current
replacement cost." said Jonathan
Boulakia, Chartwell's Chief Investment Officer.
Other Recent Transactions
On August 15, 2024, Chartwell
closed the sale of one non-core retirement residence in
Ontario for $10.8 million, settled in cash.
On August 16, 2024, Chartwell met
conditions for the sale of another non-core residence in
Ontario. The sale price of
$79.5 million is to be settled in
cash, with the closing expected in September
2024.
During Q3, 2024 we expect to complete $159.6 million of 10-year CMHC-insured mortgage
financing at average rates of approximately 4.15%.
About Chartwell
Chartwell is in the business
of serving and caring for Canada's
seniors, committed to its vision of Making People's Lives BETTER
and to providing a happier, healthier, and more fulfilling life
experience for its residents. Chartwell is an unincorporated,
open-ended real estate trust which indirectly owns and operates a
range of seniors housing communities, from independent living
through to assisted living. Chartwell is one of the largest
operators in Canada, serving
approximately 25,000 residents in four provinces across the
country. 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 information can be generally identified by the use
of words such as "anticipate", "continue", "estimate", "expect",
"expected", "intend", "may", "will", "project", "plan", "should",
"believe" and similar expressions. Forward-looking statements in
this press release include, without limitation statements relating
to the Offering and Acquired Properties, including expectations
regarding timing for completion of the Offering, the anticipated
use of the net proceeds of the Offering, expectations about the
impact of the Acquired Properties on Chartwell's Net Debt to
Adjusted EBITDA, expectations regarding the anticipation timing of
completion of the Portfolio Acquisitions, the accretiveness of the
Acquired Properties, the extent to which the Acquired Properties
will affect Chartwell's weighted average portfolio age,
expectations regarding the Acquired Properties' capital expenditure
requirements, the anticipated annual management fees, the potential
for further development of the GMA Portfolio, operating and
management synergies resulting from the Acquired Properties, the
acquisition of the additional 85% interest in a Quebec property from EMD-Batino, and lower
capital expenditures associated with the Acquired Properties.
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. See the "Risks and Uncertainties"
section in Chartwell's management's discussion analysis of results
of operations and financial condition for the year ended
December 31, 2023 dated March 7, 2024 and in our management's discussion
and analysis of results of operations and financial condition for
the three months ended March 31, 2024
dated May 9, 2024 ("Q1 2024
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 and in the Prospectus Supplement to be filed in
connection with the Offering. Except as required by law, Chartwell
does not intend to update or revise any forward-looking statements,
whether as a result of new information, future events or for any
other reason.
Non-GAAP Measures
Chartwell's consolidated
financial statements are prepared in accordance with International
Financial Reporting Standards ("IFRS"). Management uses certain
financial measures to assess Chartwell's financial performance,
which are measures not defined in generally accepted accounting
principles ("GAAP") under IFRS and may not be comparable to similar
metrics used by other entities. Chartwell's credit agreements and
outstanding debentures contain numerous financial covenants. For a
full description of certain of these covenants, please refer to the
Q1 2024 MD&A available on Chartwell's website and at
www.sedarplus.com.
For more information, please contact:
Chartwell Retirement Residences
Vlad Volodarski, Chief Executive Officer
Tel: (905) 501-4709
Email: investorrelations@chartwell.com
SOURCE Chartwell Retirement Residences (IR)