Chartwell Seniors Housing REIT

Chartwell Seniors Housing REIT

April 22, 2007 21:47 ET

ING Real Estate Australia to Partner With Chartwell on Acquisition of Regency Long-Term Care Portfolio

MISSISSAUGA, ONTARIO--(CCNMatthews - April 22, 2007) - Chartwell Seniors Housing Real Estate Investment Trust (TSX:CSH.UN) announced today that ING Real Estate Australia, Chartwell's joint venture financial partner in the United States, has agreed to provide 50% of the approximately $87.5 million cash portion of the purchase price for the Regency Care portfolio of Long Term Care (LTC) communities. The total acquisition cost, excluding closing costs, will be approximately $245.1 million, and will be financed by the assumption of mortgage debt of approximately $143.7 million at an average interest rate of 7.4%, as well as cash and equity. Closing of the acquisition is anticipated mid May 2007.

The portfolio consists of eight new, Class-A LTC homes containing 1,384 beds, and a management company with long term management contracts for six other LTC homes containing 814 beds. The management contracts will be 100% acquired by Chartwell. The majority of the residences are well-located in high-growth communities situated in and around the Greater Toronto Area. All are 100% occupied with extensive waiting lists. In addition, four of the eight properties have excess land zoned for the future development of approximately 400 assisted or independent living units.

"We are pleased to be extending our relationship with ING. This is our first partnership with them in Canada, and we look to involve them in further transactions as we build on our position as the country's largest owner and operator of retirement communities," commented Stephen Suske, Vice Chair and Co-CEO.

Chartwell 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 substantial and 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 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

This press release contains forward-looking statements that reflect the current expectations of management of Chartwell and Chartwell Master Care LP ("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 has tried to identify these forward-looking statements relating to its general affairs 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; debt financing; mezzanine financing; environmental liabilities; US/Canadian exchange rate fluctuations; government regulations; operations in the United States; joint venture interests; liability and insurance; personnel costs; labour relations; conflicts of interest; management contracts; availability of cash flows; the redemption right of Unitholders; accounting guidelines; dilution; nature of Units; Unitholder liability; market for Units and Unit price; matters affecting trading prices of convertible debentures; credit risk and prior ranking indebtedness; absence of covenant protection; and tax, including changes to tax laws. There can be no assurance that the expectations of management of Chartwell will prove to be correct.

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