Retirement Residences Real Estate Investment Trust
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Retirement Residences Real Estate Investment Trust

August 04, 2005 14:04 ET

Retirement Residences Real Estate Investment Trust Announces Growth Activities

TORONTO, ONTARIO--(CCNMatthews - Aug. 4, 2005) - Retirement Residences Real Estate Investment Trust ("Retirement REIT") (TSX:RRR.UN)(TSX:RRR.DB.B)(TSX:RRR.DB.C) announced that it has entered into agreements to lease a retirement home in London, Ontario and acquire a skilled nursing facility near Boston, Massachusetts, has also transferred three long term care homes that were under development into operations and has, as well, agreed in principle to terminate the CPD LP development agreement.

The London retirement home will be a premium facility with 99 suites available for occupation by the summer of 2006. The property is to be leased from Ivest Corporation and London Property Corporation and is currently a convent operated by the Sisters of St. Joseph. The complex is approximately 300,000 square feet including two accommodation wings, an existing care wing, a chapel and a Center for Activity and Aging run by the St. Joseph Health Centre. Subject to the landlord obtaining the necessary zoning approvals, Retirement REIT has entered into a long term lease for one accommodation wing containing the 99 suites (approximately 110,000 square feet) and holds options on the remaining space. The lease has a 30 year term with 14 renewals of five years each (100 years in total). A complete renovation of the leased wing will be completed by Ivest Corporation and London Property Corporation.

Glen Ridge Health Care Centre is a 164 unit skilled nursing facility located in Medford, Massachusetts. The purchase price is approximately US$17.8 million and closing is expected in the fall of 2005 subject to government regulatory approval. This acquisition represents Retirement REIT's 19th long term care home in the northeast U.S. and its third in Massachusetts.

At the beginning of the second quarter of 2005, two long term care homes previously under development were transferred into Retirement REIT's operations. Millers Crossing in Edmonton, Alberta is a new 134 bed facility and Sandringham in Victoria, British Columbia is a redeveloped 46 bed seniors mental care facility. The third home, a redeveloped 112 bed facility called James Bay in Victoria, British Columbia, was transferred to operations at the beginning of the third quarter of 2005. Retirement REIT had previously announced the three facilities were expected to be included in operations by these respective dates.

Retirement REIT also reached an agreement in principle with CPD LP to terminate the development agreement under which CPD LP has the exclusive right to develop retirement homes for Retirement REIT. CPD LP is a limited partnership in which George Kuhl, Barry Reichmann and Paul Reichmann, Trustees of Retirement REIT, are either directly or indirectly interested. This termination will allow Retirement REIT to partner with any quality developer of retirement homes, including CPD LP.

Retirement REIT also announced that effective October 2005 its head office will move to Mississauga, Ontario. Management made the decision to relocate in order to consolidate its head office and its Canadian operating divisions into one office so that executives may be located closer to the finance group in Cambridge, Ontario and, over the longer term, so it can reduce rental costs.

Derek Watchorn, President and Chief Executive Officer of Retirement REIT, commented: "The addition of two homes and the development and transfer to operations of three new long term care homes represent the continuation of our strategy to grow in a very measured way. At the same time, the termination of our exclusive development arrangement with CPD LP should open up opportunities to develop new retirement homes with not only CPD LP, but also other credible developers both in Canada and the United States".

Retirement REIT is the largest provider of accommodation and care for seniors in Canada. Retirement REIT owns 215 retirement and long term care facilities, including 32 facilities in select United States markets, and provides management services to 11 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 and Central Med units. 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
    (416) 929-5430
    (416) 323-3818 (FAX)
    or
    Retirement Residences Real Estate Investment Trust
    Tim Benson
    Director, Investor Relations
    (416) 928-6473
    (416) 323-3818 (FAX)