Chartwell Seniors Housing REIT

Chartwell Seniors Housing REIT

March 27, 2007 09:22 ET

Chartwell Announces Two Acquisitions and Internal Growth Projects

MISSISSAUGA, ONTARIO--(CCNMatthews - March 27, 2007) - Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today the acquisition of two seniors housing communities and investments in two internal growth projects to expand existing owned facilities. In the aggregate, these transactions are valued at approximately $61.2 million.

Chartwell will acquire 100% of Les Jardins de la Gare, an integrated seniors housing complex, located in St-Hyacinthe, Quebec. Comprised of three residences, the property contains a total of 262 units on 3.6 acres of land. Developed as a full campus of care concept, it includes independent living and light care retirement suites, as well as assisted living beds. The property is located in the centre of the city near numerous amenities and services, including the St-Hyancinthe Hospital, and is close to the Chartwell-owned Residence Ste. Marthe. The purchase price will be $20.0 million on closing, expected by the end of April 2007, with an additional $1.0 million one year following, and a final $1.0 million on the achievement of certain rental performance criteria.

Chartwell will also acquire 100% of Conservatory Pond Retirement Residence, a newly developed light care retirement community containing 85 suites overlooking a picturesque lake in Kingston, Ontario. Conservatory Pond is considered the premier retirement community in the area. This modern, three-storey facility is situated adjacent to major transportation routes and other amenities, including shopping areas and health care facilities. The residence was developed by Spectrum Seniors Housing Development LP, Chartwell's development partner, and has been managed by Chartwell since it opened in the fall of 2005. Chartwell will acquire 100% of the property for approximately $17.6 million. Closing is anticipated to be March 28, 2007.

"Including these acquisitions and the following expansion projects, we will have invested approximately $330 million in our growth initiatives so far this year. With a robust pipeline of additional acquisition opportunities, we expect to generate another year of significant growth in 2007," commented Stephen Suske, Vice Chair and Co-CEO.

Chartwell also announced investments in two internal growth projects:

- Chartwell will construct 12 independent living cottages adjacent to the REIT's existing full-care Birchwood Retirement Residence in Chilliwack, B.C. The total cost for the growth project will be approximately $2.45 million, of which Chartwell will invest approximately $368,000. The new cottages will be unique in the area and will compliment the REIT's local property portfolio and care offering.

- Chartwell, in conjunction with ING Real Estate Australia ("ING"), Chartwell's joint venture partner in the United States, will invest in adding 98 independent living and assisted living suites to almost double the size of the Gayton Terrace community located in Richmond, Virginia. The property was acquired by Chartwell and ING in May 2006. The expansion project will include a new theatre, chapel, lounge, library, and fitness room. Total costs will be approximately $21.1 million, with Chartwell investing approximately $2.1 million in the project.

"Internal expansion projects such as these, enhance our brand as North America's most trusted name in seniors housing, while at the same time generating a high return on investment for our Unitholders," commented Robert Ezer, President and Co-CEO.

Chartwell REIT is a growth-oriented investment trust owning and managing a complete spectrum of seniors housing communities. It is now 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 REIT also has an exclusive option to purchase stabilized communities 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

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

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