Chartwell closes six senior housing buys for $432M

Executive Summary

• Chartwell Retirement Residences REIT has closed its previously announced acquisition of a portfolio of six senior housing communities across Southwestern Ontario, adding 1,024 suites to its operational platform.
• The total transaction value is $432 million, structured as $416.2 million paid at closing and $15.8 million payable upon completion of future townhouse development at Dorchester Terrace in Q4 2026.
• The acquisition is financed through the assumption of approximately $232.7 million in existing CMHC-insured debt and cash on hand, directly supporting the company's strategy to invest in newer, purpose-built communities in core Canadian markets.

Key Details

• Transaction Structure: Acquisition of six purpose-built seniors housing communities operating on a private-pay basis.
• Total Consideration: $432 million ($416.2 million at closing + $15.8 million contingent on Q4 2026 townhouse completion).
• Financing: Assumption of ~$232.7 million in-place debt (majority Canada Mortgage and Housing Corp. insured) plus cash on hand.
• Portfolio Composition (1,024 total suites):
• Riverstone (London): 124 retirement suites, 135 apartments/townhouses (built 2021/2023); net-zero campus with extensive solar infrastructure.
• Richmond Woods (London): 130 retirement suites, 112 apartments/townhouses (built 2007/2010).
• Longworth (London): 126 retirement suites (built 2001).
• Dorchester Terrace (Dorchester): 123 retirement suites + 29 townhouses under development (completion expected Q4 2026).
• Westhill (Waterloo): 117 retirement suites, 100 apartments (built 2012/2018).
• Erinview (Mississauga): 57 retirement suites (built 2019); includes excess land providing potential for ~140 future suites.
• Strategic Impact: Expands Chartwell's footprint in Southwestern Ontario, a high-growth seniors housing market, while adding assets with strong operational fundamentals and future development/expansion upside.

Notable Quotes

• Jonathan Boulakia, Chief Investment Officer: "This closing marks an important milestone in executing our disciplined growth strategy... These assets offer strong operational fundamentals and future growth potential, including expansion opportunities such as the future excess land at Erinview in Mississauga and the development of townhomes, currently in construction, at Dorchester Terrace in Dorchester."
• Vlad Volodarski, Chief Executive Officer: "We are pleased to welcome residents and team members from these communities into the Chartwell family... This acquisition reinforces our commitment to serving Canada's seniors with high-quality living environments and supports our objectives of sustainable growth, operational excellence and delivering meaningful experiences for our residents."