Welltower and Chartwell Retirement Residences have agreed to wind-down their existing joint venture covering 39 communities in Canada. The joint venture, with equal ownership in the properties, began in 2012 with the interests of both parties strongly aligned.
As part of the agreement, Chartwell will transfer its interest in 23 assets to Welltower while Welltower will transfer its interest in 16 properties plus C$97.2 million in cash. One additional community will continue to be co-owned by Chartwell and Welltower. The entire 40-community portfolio has 8,476 units, so these are relatively large communities with an average of 212 units each.
When the transaction closes in the second quarter next year, Chartwell will assume approximately C$140.3 million in debt with a weighted average interest rate of 2.8% and a weighted average maturity of 4.4 years. The transaction will increase Chartwell’s 100% owned communities to 83% of its portfolio, compared with 55% before it closes. The transaction will also provide Welltower with more communities in Canada to be able to be self-managed.
TD Securities is the exclusive financial advisor to Chartwell and Osler, Hoskin & Harcourt is the legal advisor.
