MISSISSAUGA, ONTARIO -- (Marketwired) -- 08/16/13 -- Chartwell Retirement Residences ("Chartwell") (TSX: CSH.UN) announced today that it has acquired the 109-suite Ridgepointe at Pineview Retirement Residence ("Ridgepointe") in Kamloops, British Columbia. The residence opened in 2012, is currently 52% occupied and is located on an eight-acre parcel of land that has an 80 to 90-suite expansion potential. This acquisition expands Chartwell's presence in a growing seniors market and is expected to allow for strong operational synergies with the existing 97-suite Chartwell Kamloops Retirement Residence.
The purchase price, before closing costs, was $21.5 million and was partially financed by a new five-year, $11.8 million mortgage, bearing interest at 3.65%, with the remaining portion of the purchase price settled using Chartwell's Credit Facility.
"This acquisition is fully in line with our strategy to acquire newer, well-designed and well-located properties in our existing markets," commented Brent Binions, Chartwell's President and CEO. "We are pleased to acquire this new property, which boasts beautiful views, high-end finishes and a number of energy efficient features, including a geothermal system. We welcome the residents and staff of Ridgepointe to the Chartwell family."
Chartwell is a real estate investment trust which indirectly owns and operates a complete range of residences from independent supportive living through assisted living to long term care. It is one of the largest participants in the seniors housing business in North America. Chartwell's aim is to capitalize on the strong demographic trends present in its markets to maximize the value of its existing portfolio of retirement residences, and prudently avail itself of opportunities to grow internally and through accretive acquisitions.
Chartwell's Distribution Reinvestment Plan ("DRIP") allows unitholders to have their monthly cash distributions used to purchase units without incurring commission or brokerage fees, and receive bonus units equal to 3% of their monthly cash distributions. More information can be obtained at www.chartwell.com.
This press release contains forward-looking information that reflects the current expectations, estimates and projections of management about the future results, performance, achievements, prospects or opportunities for Chartwell and the seniors housing industry. The words "plans", "expects", "does not expect", "is expected", "budget", "scheduled", "estimates", "intends", "anticipates", "does not anticipate", "projects", "believes" or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "might", "occur", "be achieved" or "continue" and similar expressions identify forward-looking statements. Forward-looking statements are based upon a number of assumptions and are subject to a number of known and unknown risks and uncertainties, many of which are beyond our control, and that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking statements.
While we anticipate that subsequent events and developments may cause our views to change, we do not intend to update this forward-looking information, except as required by applicable securities laws. This forward-looking information represents our views as of the date of this press release and such information should not be relied upon as representing our views as of any date subsequent to the date of this document. We have attempted to identify important factors that could cause actual results, performance or achievements to vary from those current expectations or estimates expressed or implied by the forward-looking information. However, there may be other factors that cause results, performance or achievements not to be as expected or estimated and that could cause actual results, performance or achievements to differ materially from current expectations. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those expected or estimated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. These factors are not intended to represent a complete list of the factors that could affect us. See "Risks and Uncertainties" in the 2012 MD&A and risk factors highlighted in materials filed with the securities regulatory authorities in Canada from time to time, including but not limited to our most recent Annual Information Form.
Chartwell Retirement Residences
Chief Financial Officer
(905) 501-4710 (FAX)
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