Chartwell Seniors Housing REIT

Chartwell Seniors Housing REIT

November 28, 2006 08:31 ET

Chartwell Announces Closing of Public Offering of Trust Units and Convertible Debentures and Closing of Private Placement

MISSISSAUGA, ONTARIO--(CCNMatthews - Nov. 28, 2006) -


Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today that it has closed its previously announced issue and sale of 3,676,475 trust units for $13.60 per unit (the "Units") for aggregate gross proceeds of $50,000,060 and $125,000,000 of 6.0% subordinated unsecured convertible debentures due December 1, 2011 to a syndicate of underwriters led by RBC Capital Markets. Subscribers of Units under this offering will be eligible to receive the November monthly distribution from Chartwell.

Chartwell also announced that it has completed the previously announced private placement of trust units to a third party investor in an aggregate amount of $97,240,000. The remainder of the private placement in the amount of $2,759,997 to the same purchaser is expected to be completed shortly, bringing the total proceeds of the private placement to approximately $100,000,000. Approximately $80 million of the proceeds of the private placement has been applied to repay the bridge facility established to complete the acquisition of Domaine Bellerive on November 9, 2006, and the balance will be applied towards previously announced acquisitions.

Chartwell is a growth-oriented investment trust owning and managing a complete spectrum of seniors housing properties. It is currently the largest participant in the Canadian seniors housing business with a growing presence in the United States. 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 facilities from Spectrum Seniors Housing Development LP, 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 Trust 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

This press release contains forward-looking statements that reflect the current expectations of management of Chartwell and Chartwell Master Care LP (Chartwell Master Care LP together with its general partner and subsidiaries, the "Operator") about the future results, performance, achievements, prospects or opportunities for Chartwell, the Operator and the seniors housing industry. Chartwell has tried to identify these forward-looking statements relating to the general affairs of Chartwell as well as for statements concerning the completion of any proposed transaction, intended financing arrangement and the effects on Chartwell of such acquisitions and financings as a result thereof by using words such as "may", "will", "expect", "anticipate", "believe", "intend", "plan", "estimate", "potentially" and similar expressions. Such forward-looking statements necessarily involve known and unknown risks and uncertainties that may cause Chartwell or the Operator or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, risks related to: business risks; real property ownership and lack of diversity; geographic concentration; continued growth; acquisition and development; competition; government regulation; debt financing; mezzanine financing; environmental liabilities; third party liability and insurance; personnel costs; labour relations; conflicts of interest; management contracts; availability of cash flows; redemption right; accounting; dilution; nature of Units; Unitholder liability; market for Units and Unit price; and tax. There can be no assurance that the expectations of management of Chartwell will prove to be correct.

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