Chartwell Retirement Residences announced that it has entered into a definitive agreement to acquire the 109-suite Wedgewood Retirement Resort in Brockville, Ontario.
Located at 15 Market Street East and built in 2007, the Wedgewood is a premier residence in its local market, which enjoys a superior downtown location with spectacular water views and is in close proximity to various services, including the local hospital. The residence includes a dedicated assisted living floor with 27 suites. The purchase price includes 0.5 acres of vacant land for the potential development of approximately 40 additional suites. The property contains an upscale commercial spa that, in addition to serving Wedgewood’s residents, provides services to the broader community. The property is currently 92 per cent occupied.
The aggregate purchase price of $37.1 million will be settled by the assumption of a $19.8 million mortgage bearing interest at 4.29 per cent and maturing in April 2017, with the balance to be paid in cash. The closing of this transaction is expected to take place on May 1, 2016, and Chartwell estimates the stabilized capitalization rate to be 7.0 per cent.
“We are pleased to add this excellent residence to our portfolio. The Wedgewood strengthens our presence in the Brockville market, where we own the 74-suite Chartwell Rosedale Retirement Residence, allowing for improved operating and marketing synergies,” commented Vlad Volodarski, Chartwell’s Chief Financial Officer and Chief Investment Officer. “We are looking forward to welcoming the Wedgewood’s residents and staff to the Chartwell family.”
The Wedgewood joins Chartwell’s existing family of over 185 retirement and long term care residences across Canada. Known for its commitment to customer service and operational excellence, Chartwell is home to over 25,000 residents across Canada and employs approximately 14,000 staff dedicated to Chartwell’s vision of Making People’s Lives Better.