Chartwell Seniors Housing REIT
TSX : CSH.UN

Chartwell Seniors Housing REIT

November 20, 2007 14:46 ET

Chartwell REIT Announces Recent Acquisitions and Expansion of Development Pipeline

MISSISSAUGA, ONTARIO--(Marketwire - Nov. 20, 2007) - Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today two acquisitions and five development projects for which it will receive approximately $3.2 million in development fees.

Chartwell acquired a 50% interest in the Constantia Retirement Residence from its development partner, Spectrum Seniors Housing Development LLP ("Spectrum"). Located in Thornhill, Ontario, just north of Toronto, this brand-new, high quality and well appointed residence contains 121 light care retirement home suites in a modern five-storey building situated adjacent to a new residential and commercial development. Chartwell has been managing the property since it opened in February, 2006, and occupancy currently stands at 91.7%. Chartwell will acquire Spectrum's 50% interest in the property for approximately $17.3 million.

Chartwell will also be purchasing Cite Jardin Phase IIIA, a 173-suite independent living facility opened in July 2006. The purchase will complement Chartwell's prior acquisitions of the first two phases of the development which, in total, now comprises a total campus of care including four independent living properties, one retirement home and one long-term care community. Chartwell's development partners continue to develop the site and Chartwell expects to acquire the remaining phases upon stabilization. The accretive acquisition of the Phase IIIA property will also generate additional cost synergies and economies of scale as marketing and operating expenses will be covered by a larger base of suites. The acquisition price for 100% of the Phase IIIA property will be approximately $29.2 million. Occupancy at this community is currently stabilized at 97%.

In addition, Chartwell is enhancing its pipeline of future acquisition opportunities by providing development services to Spectrum on a number of new projects. Chartwell receives development fees for its services to Spectrum during the design and constructions stages and then ongoing management fees once the property is opened and in operation. Upon stabilization, Chartwell has the option to acquire these properties. Chartwell will receive total development fees of approximately $3.2 million for the following projects:

- Chartwell Select Thunder Bay Townhomes in Thunder Bay, Ontario. There is vacant land available on the site of its currently-owned retirement community suitable for the construction of a total of 16 townhomes for seniors. Spectrum is constructing 16 townhomes initially on the site. Chartwell will receive a development fee of $100,000.

- Bell Lane Retirement Village, a 120 suite retirement community in Brantford, Ontario. The site is located near a newly constructed major collector road and adjacent to a new retail and commercial development. Chartwell will receive a development fee of approximately $0.6 million.

- Chartwell Classic Tiffany Lane, a 212 suite retirement home in construction in St. John's, Newfoundland. The complex will be built on a 3.3 acre site near downtown. The facility will be situated in an established neighbourhood close to all amenities including churches, hospitals, major retail, and Kenny's Pond walking trails. Chartwell will receive a development fee of approximately $1.3 million.

- Chartwell Select Dufferin Centre, a 125 suite retirement home in construction in Trenton, Ontario. The site is 1.7 acres (0.7 hectares) located in the Mount Pelion area and includes an existing structure which was originally a school (Dufferin School) and has most recently been used by the City of Quinte West for recreation and community services (Dufferin Centre). Chartwell will receive a development fee of approximately $0.5 million.

- Chartwell Classic Valley Vista, a 140 suite retirement community in construction in Vaughan, Ontario. The site is located near new high-density residential and commercial developments. The site is also in close proximity to a creek and valley lands, which will remain in their natural state. Chartwell will receive a development fee of approximately $0.7 million.

"Looking ahead, our pipeline of potential acquisitions remains strong, particularly from our joint venture development partners, and we will continue to prudently evaluate accretive opportunities that enhance value and increase cash flow for our Unitholders," Mr. Suske concluded.

Chartwell is a growth-oriented investment trust owning and managing a complete spectrum of seniors housing communities. It is the largest participant in the Canadian seniors housing business and the third largest in North America. Chartwell will capitalize on the strong demographic trends present in its markets to grow internally and through accretive acquisitions. Chartwell also has an exclusive option to purchase stabilized communities from Spectrum, Canada's largest and fastest growing seniors housing development company.

Chartwell's Distribution Reinvestment Plan (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.

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