Chartwell Retirement Residences, the largest Canadian seniors housing company, has agreed to sell two of its long-term care facilities for C$112 million, or C$424,000 per bed (or US$331,000 per bed). Net proceeds to Chartwell are expected to be C$56.8 million after paying off C$41.9 million of mortgage debt. The two facilities are located in British Columbia.
The buyer of the 264-bed portfolio is AgeCare Health Services Inc. and Axium Infrastructure Inc. and its affiliates. The closing is expected to occur before the end of the year. Axium is an independent portfolio management firm with approximately C$9.4 billion in assets under management, as well as C$1.7 billion in co-investments. Founded in 1998, AgeCare currently operates 22 long-term care and supported living communities in Alberta and British Columbia, offering long-term care, supportive living, mental health, hospice and adult day programs.
This is not the first transaction Chartwell has made with AgeCare and Axium. Earlier in 2022, Chartwell agreed to sell 16 long-term care facilities in Ontario with 2,418 beds to the same buyer group. That price was C$446.5 million which included a small management business and the forward purchase of a 17th facility.
Chartwell is the largest operator of seniors housing in Canada, with more than 190 retirement communities in four provinces, including properties under development. Same-community occupancy in the second quarter was 76.4%, down 30 basis points from the second quarter in 2021. It looks like they are not experiencing the same uptick in census during 2022 as their neighbors across the border.
We hope to have more details on the transaction once it closes later in the year.
