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This news release constitutes a "designated news release" for the purposes of Chartwell Retirement Residences' prospectus supplement dated November 14, 2024 to its short form base shelf prospectus dated April 30, 2024.
MISSISSAUGA, ON, April 1, 2025 /CNW/ - Chartwell Retirement Residences ("Chartwell") (TSX: CSH.UN) announced today that it has acquired the 345 suite (of which 36 are care units) Résidence Le Florilège in Quebec City ("Le Florilège"). Located in the Beauport neighbourhood of Quebec City and built in 2022, Le Florilège is on a major arterial road directly across from the Beauport Golf Club and near retail shopping and services. Le Florilège is 97% occupied. The purchase price of $112.9 million before working capital adjustments and closing costs is being financed with cash and a $77.6 million loan maturing in 6 months and carrying an interest rate of Canadian Overnight Repo Rate Average ("CORRA") + 1.95%.
Chartwell also announced today that it has separately acquired Chartwell L'Envol residences pour retraites ("L'Envol"), a recently developed retirement residence comprised of 360 suites (of which 36 are care units) built in 2019 in the Cap-Rouge neighbourhood of Quebec City. L'Envol is located within two kilometres of a major highway and near retail shopping amenities. L'Envol is 97% occupied. The purchase price of $117.8 million before working capital adjustments and closing costs is being financed with cash and a $65.4 million loan maturing in 6 months and carrying an interest rate of CORRA + 1.95%. A mezzanine loan of $4.2 million extended by Chartwell to the prior owner of the property was also settled at closing.
Finally, Chartwell announced that it recently acquired the remaining 15% interest not owned by Chartwell in Chartwell Trait-Carré residence pour retraites ("Trait-Carré"), a 361 suite (of which 37 are care units) retirement residence located in Charlesbourg, Quebec, for a price of $17.2 million before working capital adjustments and closing costs. Trait-Carré, built in 2021, is currently 97% occupied. The purchase price included the proportionate assumption of the $66.5 million financing in place at closing, with the balance settled in cash. The financing was repaid in full by Chartwell following closing of the transaction.
"These acquisitions of high quality, recently developed residences with strong occupancies below replacement cost will positively contribute to the overall quality of Chartwell's portfolio and expand our ownership presence in high-growth Quebec City and its surrounding neighborhoods. The acquired properties are complementary to our existing Quebec portfolio and are already managed by Chartwell, which allows for a seamless integration into our platform. The transactions are consistent with our investment strategy to grow in strong markets with newer, high-quality assets which we believe will be competitive for many years." said Jonathan Boulakia, Chief Investment Officer of Chartwell Retirement Residences.