Retirement Residences Real Estate Investment Trust

Retirement Residences Real Estate Investment Trust

March 21, 2005 10:09 ET

Retirement Residences Real Estate Investment Trust Completes Previously Announced Acquisition


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RETIREMENT RESIDENCES REAL ESTATE INVESTMENT TRUST

TSX SYMBOL: RRR.UN
TSX SYMBOL: RRR.DB
TSX SYMBOL: RRR.DB.A
TSX SYMBOL: RRR.DB.B

MARCH 21, 2005 - 10:09 ET

Retirement Residences Real Estate Investment Trust
Completes Previously Announced Acquisition

TORONTO, ONTARIO--(CCNMatthews - March 21, 2005) - Retirement Residences
Real Estate Investment Trust ("Retirement REIT")
(TSX:RRR.UN)(TSX:RRR.DB)(TSX:RRR.DB.A)(TSX:RRR.DB.B) announced that it
has completed the previously announced acquisition of a portfolio of two
retirement and two long term care homes in Winnipeg, Manitoba for $76.3
million. The four homes, which provide care and accommodation to almost
600 residents, have been acquired from ILS Care Communities and
Associates. The homes include the Waverley, a 120 unit retirement home,
the Rosewood Village, a 144 unit retirement home, the Maples Personal
Care Home with 200 licensed personal care beds and the Kildonan Personal
Care Home with 120 licensed personal care beds.

Retirement REIT has assumed the existing mortgages related to these
properties of approximately $40.3 million bearing a weighted average
interest rate of 6.1%, issued a $2.5 million vendor take-back note
bearing interest at a rate of 5.0% and paid the balance in cash.

The acquisition of these homes adds to Retirement REIT's existing
portfolio of long term care and retirement homes in Manitoba. Retirement
REIT is the largest provider of accommodation and care for seniors in
Manitoba and expects that there will be economies of scale achieved with
this acquisition as a result of its in-place regional management team.

Derek Watchorn, President and Chief Executive Officer of Retirement
REIT, commented: "We are very pleased to have completed the acquisition
of this high quality portfolio of homes in Winnipeg. This acquisition
will strengthen our presence in this marketplace and be accretive to
distributable income for our unit holders. We look forward to having
these homes as part of the Retirement REIT family".

Retirement REIT is the largest provider of accommodation and care for
seniors in Canada. Retirement REIT owns 213 retirement and long term
care facilities, including 32 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 and Central Med units. For further information,
see the Retirement REIT website at www.retirementreit.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    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)