Chartwell Retirement Residences (Chartwell), a company specializing in independent living, assisted living and long-term care residences, has announced plans to sell its U.S. business to joint venture partners HCP, Inc. and Brookdale Senior Living Inc. Subject to customary closing conditions, the U.S. division will be sold for $849-million U.S. in the third quarter of 2015.
“We are pleased to have reached an agreement to sell our U.S. operations to HCP and Brookdale, with Brookdale continuing to manage the properties,” says Brent Binions, President and CEO at Chartwell. “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.”
After the sale of its U.S. portfolio, all of Chartwell’s properties will be located in Canada where demographic trends offer the company significant growth opportunities. By exiting the U.S. market, Chartwell also eliminates its reliance on third-party property management services and capitalizes on the currently strong U.S. seniors housing market.
Chartwell’s total U.S. portfolio consists of independent supported living facilities (91 per cent), memory care facilities (five per cent) and skilled nursing facilities (four per cent).