Retirement Residences Real Estate Investment Trust
TSX : RRR.UN
TSX : RRR.DB.B
TSX : RRR.DB.C

Retirement Residences Real Estate Investment Trust

January 19, 2006 16:38 ET

Retirement Residences Real Estate Investment Trust Announces Agreement To Acquire Two Skilled Nursing Facilities

MISSISSAUGA, ONTARIO--(CCNMatthews - Jan. 19, 2006) - Retirement Residences Real Estate Investment Trust ("Retirement REIT") (TSX:RRR.UN)(TSX:RRR.DB.B)(TSX:RRR.DB.C) today announced that it has entered into an agreement to acquire two skilled nursing facilities near Newport, Rhode Island.

South County Nursing and Subacute Center is a 120 bed facility located in North Kingstown and Heatherwood Nursing and Subacute Center is a 114 bed facility located in Newport. The purchase price is approximately US$20 million. Retirement REIT will assume the existing mortgages related to these properties of approximately US$10.3 million bearing a weighted average interest rate of 6.4%, will issue US$3.1 million in vendor take-back notes bearing a weighted average interest rate of 5.2% and will pay the balance in cash. Closing of the acquisition is subject to government regulatory licensing and financing approval which is expected in the spring of 2006. These two acquisitions represent Retirement REIT's first two skilled nursing facilities in Rhode Island and are an excellent complement to its existing portfolio of 19 skilled nursing facilities located in the northeast United States.

Retirement REIT is the largest provider of accommodation and care for seniors in Canada. Retirement REIT owns 216 retirement and long term care facilities, including 33 facilities in select United States markets, and provides management services to 10 homes for other parties, with an aggregate resident capacity in excess of 25,000. Retirement REIT also provides nursing placement and in-home health care through its Central Health Services unit. For further information, see the Retirement REIT website at www.retirementreit.com.

Contact Information

  • Retirement Residences Real Estate Investment Trust
    David Beirnes
    Chief Financial Officer
    (289) 360-1222
    (289) 360-1228 (FAX)
    or
    Retirement Residences Real Estate Investment Trust
    Tim Benson
    Director, Investor Relations
    (289) 360-1224
    (289) 360-1228 (FAX)