Chartwell Retirement Residences announced that it acquired three retirement residences for an aggregate purchase price of $170.7 million from three separate groups of vendors affiliated with MTCO Holdings Inc.
The Village of Oxford Gardens (pictured above) is located in Woodstock, Ontario, and is comprised of 185 suites. Building construction was completed in two phases in 2009 and 2012. The residence has ample amenity offerings, large outdoor spaces, a complementary commercial real estate component and a state-of-the-art solar water heating system. The residence is currently 88 per cent occupied.
Montgomery Village Seniors Community is located in Orangeville and is comprised of 136 suites. The residence opened in 2012 and is a leader in its local market with current occupancy of 93 per cent. The campus contains excess land for development of up to 69 additional suites. Included in the purchase price of this property is $1.0 million related to this excess land and a deferred payment of $1.85 million due on the third anniversary of the closing.
Harwood Place Seniors Community is a 126-suite residence located in Ajax, which opened in July 2015. The residence has experienced strong pre-leasing with 56 per cent of the suites currently reserved with move-in dates on or before October 1, 2015. The vendor has provided Chartwell with 24-months occupancy support of up to $2.5 million. This amount will be held back on closing and released to Chartwell during the lease-up period based on an agreed-upon formula. In addition, the vendor has agreed to convert certain common areas in this building to four additional suites at their cost within 12 months of closing.
“This transaction is fully in line with our strategy to expand our portfolio with new, high-quality properties, located in strong and growing markets and also furthers our goal to accretively re-invest proceeds from the recent sale of our U.S. portfolio,” commented Vlad Volodarski, Chartwell’s Chief Financial Officer and Chief Investment Officer. “We are also pleased to establish a business relationship with MTCO, a reputable developer of seniors housing in Ontario and we are looking forward to working with them on future projects.”