News

Chartwell Retirement to sell U.S. business, focus on Canadian holdings

MISSISSAUGA, Ont. – Chartwell Retirement Residences (TSX:CSH.UN) has a deal to sell its entire U.S. portfolio of seniors-oriented properties through a series of transactions for US$849 million.

The Toronto-area company expects to net about C$410 million cash, after repaying mortgage debt, tax and transaction costs.

The buyer is a new joint venture formed by HCP Inc. and Brookdale Senior Living Inc., which is the current manager of the properties. HCP is a real estate investment trust focused mostly on the U.S. health care industry.

Chartwell says the deal will allow it to focus on its core business in Canada, eliminate the need to refinance about US$439 million of U.S. mortgage debt that matures by May 1, 2017, eliminate the risk associated with fluctuations in the U.S. dollar’s value and take advantage of good selling conditions in the United States.

Brookdale will continue to manage the properties owned by Chartwell’s CSH Master Care USA Inc., which has a total of 5,025 suites in 35 communities.

“We are confident that the residents in these homes will continue to enjoy the same high level of service and that this transaction will cause little to no disruption to the residents and care staff in the properties. This transaction allows us to fully concentrate our efforts on properties that we manage,” said Brent Binions, Chartwell’s president and CEO.