Chartwell Retirement Residences has entered into a definitive agreement to purchase a seniors housing portfolio with six purpose-built seniors housing communities across London (three), Dorchester, Waterloo and Mississauga, Ontario, totaling 1,024 units. The communities serve low-acuity seniors and are all 100% private pay. The total purchase price is CAD$432 million (CAD$422,000 per unit), or USD$317.3 million (USD$310,000 per unit).
The portfolio includes Riverstone in London, built in 2021 and 2023, with 124 independent living and 135 active adult units. Also in London is Richmond Woods, built in 2007 and 2010, featuring 130 IL and 112 AA units, along with Longworth, built in 2001, with 126 IL units. Built in 2017, Dorchester Terrace is in Dorchester with 123 IL units and an additional 29 units in development, expected to be completed by the seller in the fourth quarter of 2026. Built in 2012 and 2018, Westhill is in Waterloo with 117 IL and 100 AA units. Lastly, Erinview, built in 2019, is in Mississauga with 57 IL units and potential for an additional 140 units on excess land currently leased to a third party.
The transaction is expected to close in the fourth quarter of 2025, with an acquisition price at closing of CAD$416.2 million, or USD$305.7 million. The committed purchase price for the units under development at Dorchester Terrace is CAD$15.8 million, or USD$11.6 million, payable upon construction completion anticipated in the fourth quarter of 2026. The purchase price also includes the excess land at Erinview.
At closing, the purchase price will be settled by assuming in-place debt of CAD$232.7 million, or USD$170.9 million, majority CMHC-insured, and in part from proceeds of planned 2025 CMHC financings totaling approximately CAD$240 million, or USD$176.3 million. The assumed in-place debt has a weighted average interest rate of 4.5% and weighted average maturity date of March 2045. TD Securities is acting as the financial advisor to the seller.
