Chartwell Retirement Residences entered into definitive agreements for acquisitions of three modern retirement residences on Vancouver Island. Together, the communities total 384 units. The aggregate purchase price is US$168.4 million.
Built in 2023, Vista Retirement Residence stands 11 stories tall and comprises 104 independent supporting living and 48 memory care units in Victoria. The community is currently 28% occupied. The gross purchase price is US$77 million, or US$506,600 per unit, of which US$6.8 million will be held in escrow to support sellers’ obligation under a 24-month NOI guarantee.
Built in 2018, Nanaimo Memory Care features 77 memory care units in Nanaimo with an occupancy rate of 88%. The purchase price is US$15 million, or US$195,000 per unit. Currently under construction, The Edgewater Retirement Residence is adjacent to Nanaimo and will have 155 independent supportive living units. The gross purchase price will be US$76.2 million, or US$491,600 per unit, of which US$6.5 million will be held in escrow to support sellers’ obligation under the 36-month NOI guarantee.
Chartwell expects the closing of the Vista and Nanaimo acquisitions to occur Q4:24, and will acquire Edgewater when construction is completed, which is expected Q2:25. The company intends to fund these transactions through a combination of net proceeds from the sales of its non-core assets, cash on hand and its credit facilities. These acquisitions will expand Chartwell’s footprint in the British Columbia market, creating meaningful scale on Vancouver Island.
Other recent transactions include Chartwell’s sale of a non-core retirement residence in Ontario for US$8 million, settled in cash, and its sale of another non-core residence in Ontario for which the sale price of US$59 million is to be settled in cash with closing expected in September. Also, during Q3:24, it expects to complete US$118.4 million of 10-year CMHC-insured mortgage financing at average rates of approximately 4.15%.
