Welcome!

News Feed Item

Chartwell Enters Into a Joint Venture and Provides an Update on Transaction Activities

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.

About Chartwell

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.

About Batimo

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.

Forward-Looking Information

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effi...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and shared the must-have mindsets for removing complexity from the develo...
SYS-CON Events announced today that MangoApps 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. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device.
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, explained how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
“delaPlex Software provides software outsourcing services. We have a hybrid model where we have onshore developers and project managers that we can place anywhere in the U.S. or in Europe,” explained Manish Sachdeva, CEO at delaPlex Software, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor – all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, discussed using predictive analytics to mon...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discussed how businesses can gain an edge over competitors by empowering consumers to take control through IoT. He cited examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He also highlighted how IoT can revitalize and restore outdated business models, making them profitable ...
SYS-CON Events announced today that Isomorphic Software will exhibit at DevOps Summit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Isomorphic Software provides the SmartClient HTML5/AJAX platform, the most advanced technology for building rich, cutting-edge enterprise web applications for desktop and mobile. SmartClient combines the productivity and performance of traditional desktop software with the simp...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam 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.
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.