Chartwell Seniors Housing REIT

Chartwell Seniors Housing REIT

November 10, 2006 09:24 ET

Chartwell Completes Two Acquisitions for $124 Million

MISSISSAUGA, ONTARIO--(CCNMatthews - Nov. 10, 2006) - Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today that it had completed two of the acquisitions previously announced on October 19, 2006. The total purchase price for these two properties was approximately $124 million.

Domaine Bellerive is a three tower apartment complex comprising 810 units located in Laval, a suburb of Montreal, Quebec. Situated on the banks of the Riviere des Prairies, the property has exceptional views from all suites. With more than 63% of the tenant base over 60 years old, Chartwell, through its joint venture management company with Groupe Melior, will convert the property to an independent living community and offer a number of new services tailored for seniors, including housekeeping, food, recreation and nursing. The property also includes 5.38 acres of excess land with excellent development potential, as well as 15,200 square feet of commercial space including such services as a drugstore, medical clinic, restaurant, convenience store and hairdresser.

Chartwell acquired 100% of the property for approximately $71.25 million, excluding closing costs, of which $5.25 million is deferred and payable on the first anniversary of closing. To finance this acquisition, Chartwell arranged for an $80 million convertible bridge loan supplied by RBC Capital Markets. This loan is expected to be repaid in part from the proceeds of the new mortgage financing on the property in the amount of $50.8 million, expected to close at the end of November 2006.

"With the completion of this key acquisition and other transactions announced on October 19, 2006, our Quebec owned and managed portfolio will grow to 7,517 suites in 34 properties, representing 22% of our total portfolio and further diversifying our position as Canada's largest owner and operator of seniors housing facilities," commented Stephen Suske, Vice Chair and President.

Chartwell also announced today that it had completed the acquisition of Heritage Glen, a two building apartment complex comprising 323 suites situated in the Meadowvale neighborhood of Mississauga, Ontario. The property, originally designed as an age-restricted apartment complex, was recently converted to a light care seniors residence with a central amenities building joining the two buildings and offering numerous services demanded by today's senior. The property is well positioned to compete with neighboring properties offering similar amenities at a higher cost. Chartwell has been involved in managing the property since 2003.

The REIT paid approximately $51.5 million for the property, excluding closing costs, for a 100% interest in the property. Approximately $23.5 million of the cost is deferred and payable over the first six years after closing. Approximately $23.4 million in mortgage debt was assumed on closing bearing interest at 6.53% and expiring in March 2012. The balance of sale was paid for by utilizing the REIT's cash on hand and existing operating lines of credit.

"The acquisition of Heritage Glen is an innovative and strategic investment for Chartwell", added Mr. Suske. "This apartment conversion caters to the value market and offers an affordable alternative for seniors in a market, where affordable options are few."

Chartwell REIT is a growth-oriented investment trust owning and managing a complete spectrum of seniors housing properties. It is 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 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 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 REIT and Chartwell Master LP (Master 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 REIT has tried to identify these forward-looking statements relating to the general affairs of the REIT as well as for statements concerning the completion of any proposed transaction, intended financing arrangement and the effects on the REIT 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 REIT 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 REIT will prove to be correct.

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