Chartwell Seniors Housing REIT

Chartwell Seniors Housing REIT

May 17, 2010 10:40 ET

Chartwell Completes Acquisition of Remaining 50% Ownership Interests in US Retirement Portfolio

MISSISSAUGA, ONTARIO--(Marketwire - May 17, 2010) - Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today that it had completed the previously-announced acquisition from ING Real Estate Investment Management Australia PTY Limited and its affiliates ("ING") of the remaining 50% ownership interests in six retirement home properties located in the United States ("Meridian portfolio"). Chartwell expects to complete the previously-announced acquisition from ING of the remaining 50% ownership in eight long term care properties situated in Ontario ("Regency Care portfolio") during the second quarter of 2010.

The Meridian portfolio consists of six independent living and assisted living communities totalling 1,057 suites: five properties in the Denver, Colorado area and one in Temple, Texas. The Meridian portfolio was acquired in a joint venture with ING in August 2005. Chartwell's US joint venture property management company, Horizon Bay Chartwell, will continue managing these properties. The purchase price for ING's 50% partnership interest in the Meridian Portfolio was US$110.5 million (before closing costs and working capital adjustments) and was settled through the assumption of outstanding mortgages payable of approximately US$74.7 million and cash payment of approximately US$35.8 million.

"The acquisition of full ownership in this high quality portfolio enhances our presence in strong US retirement markets, and will be accretive to our AFFO on an annualized basis," stated Brent Binions, President and CEO.

Chartwell is a real estate investment trust which indirectly owns and operates a complete range of seniors housing communities from independent supportive living ("ISL") through assisted living ("AL") to long-term care ("LTC"). 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

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 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.

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