Chartwell to buy six Ontario seniors homes for $432M

Executive Summary

• Chartwell Retirement Residences Real Estate Investment Trust has entered into a definitive agreement to acquire a portfolio of six senior housing communities in Southwestern Ontario (London, Waterloo, and Mississauga) for a total purchase price of $432 million.
• The acquisition adds 1,024 suites to Chartwell’s portfolio, consisting of independent living suites, apartments, and townhomes designed for active, low-acuity seniors.
• The transaction is expected to close in Q4 2025, with the purchase price settled through the assumption of $232.7 million in in-place debt and proceeds from planned 2025 CMHC financings.

Key Details

• Target Assets: A portfolio of six purpose-built seniors' communities totaling 1,024 suites:
  • Riverstone (London): Built 2021/2023; 124 retirement suites, 135 seniors apartments/townhomes; part of a net-zero campus with solar infrastructure.
  • Richmond Woods (London): Built 2007/2010; 130 retirement suites, 112 seniors apartments/townhomes.
  • Longworth (London): Built 2001; 126 retirement suites.
  • Dorchester Terrace (Dorchester): Built 2017; 123 retirement suites; 29 townhomes in development (completion expected Q4 2026).
  • Westhill (Waterloo): Built 2012/2018; 117 retirement suites, 100 seniors apartments.
  • Erinview (Mississauga): Built 2019; 57 retirement suites; includes excess land with potential for 140 additional suites currently leased to a third party.
• Financial Structure:
  • Total Purchase Price: $432 million (approx. $422,000 per suite).
  • Price at Closing: $416.2 million.
  • Deferred Payment: $15.8 million committed for the Dorchester Terrace townhomes, payable upon construction completion in Q4 2026.
  • Funding: Settlement via assumption of in-place debt ($232.7 million) and proceeds from planned 2025 CMHC financings (~$240 million).
  • Debt Terms: Weighted average interest rate of 4.50%; weighted average maturity date of March 2045; majority CMHC-insured.
• Strategic Rationale: Expansion into Southwestern Ontario, a dynamic seniors housing market; focus on high-quality, purpose-built assets for independent, low-acuity seniors.
• Advisors: TD Securities acting as exclusive financial adviser to the vendor.
• Closing: Expected in Q4 2025.

Notable Quotes

• "This acquisition represents a significant strategic expansion for Chartwell in Southwestern Ontario, one of Canada's most dynamic and growing seniors housing markets... We are proud to welcome these residences to Chartwell as we continue to grow and serve more seniors with support and purpose." — Jonathan Boulakia, Chief Investment Officer
• "This acquisition reflects our continuing execution on a disciplined investment strategy focused on high-quality residences in markets with strong demographics and long-term demand fundamentals... These communities not only enhance our portfolio with modern, purpose-built assets but also provide a clear pathway for sustainable growth through asset optimization and targeted development opportunities." — Jonathan Boulakia, Chief Investment Officer