Chartwell Retirement Residences completed the sale of two long-term care facilities in British Columbia to AgeCare Health Services and a fund managed by Axium Infrastructure Inc. The deal included Malaspina Care Residence in Nanaimo (Vancouver Island) and Carlton Care Residence in Burnaby (outside of Vancouver), which total 264 long-term care beds.
The value of the transaction came to C$112 million, or about US$81.9 million (US$310,000 per bed). In addition, the buyers assumed property specific debt of approximately C$26 million, with the balance paid in cash, approximately C$16 million of which was used to repay the remaining mortgage debt on the British Columbia properties. Chartwell intends to use the net proceeds to pay down debt and for general corporate purposes.
The deal also represented the end of the first phase of Chartwell’s strategic portfolio repositioning away from funded long-term care to high growth, primarily private pay retirement communities. The company is also transitioning its Ontario long-term care platform to AgeCare and Axium, which should be completed in the first half of 2023.
