Chartwell Retirement Residences., - CEO, Brent Binions
CEO, Brent Binions
Source: BNN Bloomberg
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  • Chartwell Retirement Residences (TSX:CSH-UN) has announced the acquisition of a new property in Quebec
  • The company now owns a 42.5 per cent interest in Chartwell Le St-Gabriel résidence pour retraités
  • The Saint-Hubert residence offers 313 independent living and 21 assisted living suites, which opened in May 2018
  • Chartwell paid a total of C$37.9 million for its share, and will manage the property under an incentive-based management contract
  • Shares in the company are currently up 1.95 per cent to $13.61, with a market cap of $2.91 billion

Chartwell Retirement Residences (TSX:CSH-UN) has announced the acquisition of a new property in Quebec.

The company acquired the 42.5 per cent interest in Chartwell Le St-Gabriel résidence pour retraités from its development partner, Batimo Inc.

Real estate investment trust, Welltower Inc (NYSE:WELL), also acquired a 42.5 per cent interest in the property. Batimo will retain the remaining 15 per cent.

Located in Saint-Hubert, Chartwell Le St-Gabriel offers 313 independent living and 21 assisted living suites.

The property has been under Chartwell management since Batimo finished construction. It originally opened in May 2018, and is currently 97 per cent occupied.

Vlad Volodarski, Chartwell’s Chief Financial Officer and Chief Investment Officer, said that the acquisition will grow the company’s relationships with both Welltower and Batimo.

“The successful lease-up of this residence is a testament to the outstanding work of Chartwell’s and Batimo’s teams in designing, developing and operating this property.

“We are looking forward to many years of delivering exceptional resident experience and quality care at Chartwell Le St-Gabriel,” he concluded.

Chartwell paid a total of C$37.9 million for the acquisition.

The price was settled by the assumption of an existing $23.9 million mortgage and a mezzanine loan of $3.6 million. Chartwell paid the remaining balance in cash.

In December 2019, Chartwell also announced the acquisition of a 256-suite retirement residence in Edmonton, Alberta.

With no other transactions made public since then, the company’s acquisition of Chartwell Le St-Gabriel represents its first for 2020.

Chartwell currently owns and operates, indirectly, a range of senior housing communities. Its assets are home to 25,000 residents throughout Canada, and provides employment for more than 15,000 staff.

Shares in the company are currently up 1.95 per cent to $13.61, with a market cap of $2.91 billion at 12:35 pm EST.

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