Chartwell Seniors Housing REIT
TSX : CSH.UN

Chartwell Seniors Housing REIT

July 21, 2011 17:41 ET

Chartwell Announces Sale of a Non-Core Property and A New Mortgage Financing

MISSISSAUGA, ONTARIO--(Marketwire - July 21, 2011) - Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) ("Chartwell") announced today that it entered into an agreement to sell its 810-suite non-core Domaine Bellerive property located in Laval, Quebec.

The sale price is $70.0 million, of which $1.5 million will be held in escrow. The escrow funds will provide the purchaser with monthly income protection until such time as the vacancy declines to 3% or lower for three consecutive months and existing tenant incentives are realized, at which time any remaining funds will be released to Chartwell. On closing, the purchaser will assume the existing CMHC-insured mortgages of approximately $47.0 million bearing a weighted average interest rate of 4.80% and a weighted average term to maturity of 12.5 years. Chartwell intends to use the net cash proceeds of approximately $21.5 million to repay amounts outstanding on its operating credit facility. The closing of this transaction is expected on or before July 31, 2011.

"We regularly examine each of our properties in order to ensure their alignment with our mission to provide accommodation, care and services in every home, reflective of our residents' needs," commented Mr. Binions, Chartwell's President and CEO. "We will continue to enhance value for our Unitholders over the long term by reviewing the highest and best use for our portfolio including, where necessary, the disposition of existing properties that do not meet this criteria."

Chartwell also announced today that it entered into an agreement to finance one of its properties with a $23.9 million, 10-year mortgage bearing interest at 5.15%. The net proceeds for this financing, which is expected to close before July 31, 2011, will be used to repay amounts outstanding on Chartwell's operating credit facility.

Chartwell is a real estate investment 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 one of the largest participants in the seniors housing business in North America. Chartwell's aim is to capitalize on the strong demographic trends present in its markets to maximize the value of its existing portfolio of seniors housing communities, and prudently avail itself of opportunities to grow internally and through accretive acquisitions. 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.

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. The words "plans", "expects", "does not expect", "is expected", "budget", "scheduled", "estimates", "intends", "anticipates", "does not anticipate", "projects", "believes" or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "might", "occur", "be achieved" or "continue" and similar expressions identify forward-looking statements. 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.

While we anticipate that subsequent events and developments may cause our views to change, we do not have an intention to update this forward-looking information, except as required by applicable securities laws. This forward-looking information represents our views as of the date of this press release and such information should not be relied upon as representing our views as of any date subsequent to the date of this document. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimated expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. 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 not intended to represent a complete list of the factors that could affect us. See "Risks and Uncertainties" in our 2010 MD&A and risk factors highlighted 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.

Contact Information

  • Chartwell Seniors Housing Real Estate Investment Trust
    Vlad Volodarski
    Chief Financial Officer
    (905) 501-4709
    (905) 501-4710 (FAX)
    vvolodarski@chartwellreit.ca