Chartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a range of seniors housing communities, from independent living through to assisted living. Chartwell is one of the largest operators in Canada, serving approximately 25,000 residents in four provinces across the country. Photo credit: chartwell.com
BRITISH COLUMBIA – Chartwell Retirement Residences (TSX: CSH.UN) announced that it has entered into definitive agreements for acquisitions of three modern retirement residences on Vancouver Island totaling 384 suites for an aggregate purchase price of $226.9 million, consisting of:
- The 152-suite Vista Retirement Residence, located in Victoria, built in 2023, which offers a continuum of care with independent supporting living (“ISL”), assisted living and memory care services.
- Nanaimo Memory Care, located in Nanaimo, built in 2018, comprised of 77 suites; and
- The Edgewater Retirement Residence, located adjacent to the Nanaimo MC, currently under construction, which will be comprised of 155 suites offering ISL services. Chartwell will acquire the residence upon construction completion, which is expected in Q2, 2025.
Vista is an upscale residence located in the charming Victoria suburb of Esquimalt, within walking distance to numerous retail and service amenities. The 11 storey residence currently offers a continuum of care, with 104 ISL suites and 48 memory care suites. The residence boasts large and well-appointed common areas, and beautiful ocean views. The residence is currently 28% occupied. The gross purchase price for the Vista is $103.9 million, of which $9.2 million will be held in escrow to support vendors’ obligation under a 24-month Net Operating Income Guarantee.
Nanaimo MC is located in the north end of the City of Nanaimo on Long Lake. The area offers a serene backdrop and easy access to retail, medical care and entertainment amenities. The residence provides memory care services and is currently 88% occupied. The purchase price for the Nanaimo MC is $20.3 million.
Chartwell expects the closing of the Vista and Nanaimo MC acquisitions to occur in Q4, 2024.
The Edgewater, located adjacent to Nanaimo MC and currently under construction, will be comprised of 155 ISL suites with ample and modern amenities. Construction is expected to be completed in Q2, 2025, at which point Chartwell will acquire the residence. The gross purchase price for The Edgewater will be $102.7 million of which $8.7 million will be held in escrow to support vendors’ obligation under the 36-month NOI Guarantee.
Chartwell expects to fund these transactions through a combination of net proceeds from the sales of its non-core assets, cash on hand, and its credit facilities.
“These acquisitions of high quality, newly developed residences will positively contribute to the overall quality of Chartwell’s portfolio and expand our presence in the strong British Columbia market. These transactions will create meaningful scale on Vancouver Island, which provides operating and management synergies. We believe the quality of the acquired properties and their excellent locations, combined with our operating expertise, will support successful lease up and multiyear occupancy and market rate growth. We are pleased to acquire these properties in Canada’s retirement destination below current replacement cost.” said Jonathan Boulakia, Chartwell’s Chief Investment Officer.
Source: Chartwell
