MISSISSAUGA, ON, April 15, 2021 /CNW/ – Chartwell Retirement Residences (“Chartwell”) (TSX: CSH.UN) announced today that, along with its partner Welltower, it has acquired an ownership interest in the 221-suite Chartwell Le Teasdale résidence pour retraités (“Teasdale”) phase II (“Phase II”) from its partner Batimo Inc. (“Batimo”). Both Chartwell and Welltower each acquired a 42.5% ownership interest with Batimo retaining the remaining 15%.
Simultaneously, Chartwell sold half of its existing interest in Teasdale phase I (“Phase I”) to Welltower to align the ownership structure across the entire complex.
Located at 950 Boulevard Lucille-Teasdale Terrebonne, Quebec, Phase II is the second and final phase completing the 564-suite independent living and assisted living complex. Phase II opened in March 2018 and has enjoyed successful leasing with current occupancy in excess of 85%.
The purchase price for Chartwell’s 42.5% interest in Phase II is $30.3 million ($71.3 million at 100% ownership) and will be settled by the assumption of the existing mortgage of $18.7 million ($43.9 million at 100% ownership), maturing on December 31, 2021 and carrying interest at prime + 1.15% (with a floor of 4.0%), and the settlement of the existing mezzanine loan of $4.0 million, with the balance to be paid in cash. The transaction is subject to an NOI guarantee for six-months from the closing of the transaction.
Welltower acquired a 42.5% interest in Phase I from Chartwell for $30.7 million ($72.2 million at 100% ownership) and assumed existing mortgage of $23.4 million ($55.0 million at 100% share), maturing on January 1, 2022 and bearing interest at 3.37%. The following table summarizes respective cash flows.
|
Cash Flows at Ownership Share |
|||
|
Disposition |
Acquisition |
||
|
Phase I |
Phase II |
Combined |
|
|
Value |
30.7 |
(30.3) |
0.4 |
|
Debt assumed |
(23.4) |
18.7 |
(4.7) |
|
Mess settlement |
– |
4.0 |
4.0 |
|
Cash Requirements |
7.3 |
(7.6) |
(0.3) |
“We are very pleased with the successful lease-up of phase II and the entire Le Teasdale résidence pour retraités complex. We are also happy to grow our partnership with Welltower,” commented Jonathan Boulakia, Chartwell’s Chief Investment Officer and Chief Legal Officer.
ABOUT CHARTWELL
Chartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a complete range of seniors housing communities, from independent supportive living through assisted living to long term care. It is the largest operator in the Canadian seniors living sector with approximately 200 quality retirement communities in four provinces. Chartwell is committed to its vision of Making People’s Lives BETTER and to providing a happier, healthier and more fulfilling life experience for its residents. For more information, visit www.chartwell.com.
For more information regarding this press release, please contact:
Chartwell Retirement Residences
Jonathan Boulakia
Chief Investment Officer
tel: (905) 501-6763
email: investorrelations@chartwell.com
SOURCE Chartwell Retirement Residences
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