|By Marketwired .||
|July 21, 2014 07:00 AM EDT||
MISSISSAUGA, ONTARIO -- (Marketwired) -- 07/21/14 -- Chartwell Retirement Residences ("Chartwell") (TSX:CSH.UN) announced today that in separate transactions it acquired interests in three retirement residences and a medical office building in the Province of Quebec for an aggregate $66.0 million, and closed on the previously-disclosed sale of a property in Ottawa, Ontario.
In the first transaction, Chartwell and Batimo Inc. ("Batimo"), a Quebec-based real estate developer, established a joint venture (the "Joint Venture") pursuant to which Chartwell acquired an 85% interest in two retirement residences ("L'Unique" and "Les Monarques") and a medical office building ("Polyclinique") (collectively, the "Campus") for $44.3 million, before closing costs, from entities affiliated with Batimo. The Campus is located on a nine-acre parcel of land (the "Site") adjacent to a 261-bed hospital in the St. Eustache suburb of Montreal. Batimo has retained a 15% interest in the Campus.
L'Unique is a 169-suite independent living retirement residence built in 2012 and is currently 98% occupied. Les Monarques is a 98-suite assisted living retirement residence with 78 funded and 20 private-pay suites built in 2009, and is currently 100% occupied. Polyclinique is a 43,780 square foot medical office building built in 2012, and is currently 70% occupied. The purchase price was satisfied by the assumption of mortgages totalling $27.9 million with a weighted average term to maturity of approximately 10 years and a weighted average interest rate of 3.57%, with the remainder paid in cash. Batimo provided Chartwell with a five year net operating income guarantee on L'Unique and Les Monarques up to an aggregate maximum amount of $1.3 million. In addition, Batimo provided Chartwell with a five year net operating income guarantee on Polyclinique (the "Polyclinique NOI guarantee"). Under the Polyclinique NOI guarantee, Chartwell's share of net operating income will be at least $0.8 million per annum. Chartwell's first year capitalization rate is expected to be 7.4%.
Chartwell also agreed to advance a mezzanine loan to Batimo for the development of a 90-suite addition to L'Unique ("L'Unique Phase II"). The $1.4 million mezzanine loan will be for a five-year term, bear interest at the rate equal to the higher of 10% and the yield on a 10-year Government of Canada bond plus 7%, to be fixed at the time of the advance. Chartwell plans to acquire an 85% interest in L'Unique Phase II upon stabilization and satisfaction of certain other conditions, at a purchase price determined by an appraisal. The mezzanine loan term may be extended for another two years under certain conditions.
The Site also includes excess land for the development of an additional 425 suites. While Batimo will initially retain ownership of this land, Chartwell and Batimo expect to jointly develop this additional density over time, as well as to pursue other development opportunities in the Province of Quebec. Chartwell will manage operations of the acquired properties and future development properties.
In another unrelated transaction, on July 3, 2014, Chartwell acquired Jardins Notre-Dame ("JND"), a 151-suite independent living retirement residence adjacent to Chartwell's 222-suite Notre Dame de Hull, a full service retirement residence located in Gatineau, Quebec. JND was built in 2008 and is currently 96% occupied.
The purchase price for JND, before closing costs, was $21.8 million and was settled in cash. The first year capitalization rate is expected to be 7.1%.
"We are pleased to enter into this new joint venture with Batimo, a reputable and successful real estate developer. We are looking forward to growing our joint venture by pursuing new development opportunities in the Province of Quebec. We are also pleased to add new assets to our Quebec platform and we expect to realize meaningful management synergies over time. These transactions are fully in line with our strategy to acquire newer, well-designed and well-located properties in our existing markets," commented Brent Binions, Chartwell's President and CEO. "We welcome the residents and staff of these properties to the Chartwell family."
On July 2, 2014, Chartwell closed the previously-disclosed sale of the 196-suite City Centre Retirement Residence located in Ottawa, Ontario for $24.5 million before closing costs. Chartwell owned a 50% interest in this property.
Chartwell is an unincorporated, open-ended 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 one of the largest participants in the seniors housing business in North America. Chartwell's aim is to capitalize on the strong demographic trends present in its markets to maximize the value of its existing portfolio of seniors housing communities, and prudently avail itself of opportunities to grow internally and through accretive acquisitions. More information can be obtained at www.chartwell.com.
Batimo is a real estate developer affiliated with EMD Construction Inc. ("EMD"). Founded in 1998 and employing 172 people, Batimo and EMD have completed numerous residential construction projects, including retirement homes, condominiums and social housing. In addition, EMD has been involved in commercial and office building construction projects such as medical and shopping centers, daycare and other. Well-established in Quebec, EMD has also been active abroad, more specifically in Russia and India. More information can be obtained at www.emdconstruction.com.
This press release contains forward-looking information that reflects the current expectations, estimates and projections of management about the future results, performance, achievements, prospects or opportunities for Chartwell and the seniors housing industry. Forward-looking statements are based upon a number of assumptions and are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. These factors are more fully described in the "Risks and Uncertainties" section in Chartwell's 2013 MD&A and in materials filed with the securities regulatory authorities in Canada from time to time, including but not limited to our most recent Annual Information Form.
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
Jul. 23, 2016 11:00 AM EDT Reads: 1,795
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Jul. 23, 2016 11:00 AM EDT Reads: 429
Cloud analytics is dramatically altering business intelligence. Some businesses will capitalize on these promising new technologies and gain key insights that’ll help them gain competitive advantage. And others won’t. Whether you’re a business leader, an IT manager, or an analyst, we want to help you and the people you need to influence with a free copy of “Cloud Analytics for Dummies,” the essential guide to this explosive new space for business intelligence.
Jul. 23, 2016 11:00 AM EDT Reads: 433
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Jul. 23, 2016 11:00 AM EDT Reads: 1,114
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
Jul. 23, 2016 10:45 AM EDT Reads: 1,947
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 10:00 AM EDT Reads: 1,882
"C2M is our digital transformation and IoT platform. We've had C2M on the market for almost three years now and it has a comprehensive set of functionalities that it brings to the market," explained Mahesh Ramu, Vice President, IoT Strategy and Operations at Plasma, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Jul. 23, 2016 10:00 AM EDT Reads: 1,026
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
Jul. 23, 2016 09:45 AM EDT Reads: 948
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Jul. 23, 2016 09:45 AM EDT Reads: 1,719
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
Jul. 23, 2016 09:15 AM EDT Reads: 1,000
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Jul. 23, 2016 09:00 AM EDT Reads: 808
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
Jul. 23, 2016 09:00 AM EDT Reads: 1,912
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Jul. 23, 2016 08:30 AM EDT Reads: 649
It’s 2016: buildings are smart, connected and the IoT is fundamentally altering how control and operating systems work and speak to each other. Platforms across the enterprise are networked via inexpensive sensors to collect massive amounts of data for analytics, information management, and insights that can be used to continuously improve operations. In his session at @ThingsExpo, Brian Chemel, Co-Founder and CTO of Digital Lumens, will explore: The benefits sensor-networked systems bring to ...
Jul. 23, 2016 08:15 AM EDT Reads: 1,431
When building large, cloud-based applications that operate at a high scale, it’s important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. “Fly two mistakes high” is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Lee...
Jul. 23, 2016 08:00 AM EDT Reads: 1,231