Press release from Marketwire
Chartwell Agrees to Sell Seven Non-Core U.S. Properties
Wednesday, May 15, 2013
Chartwell Agrees to Sell Seven Non-Core U.S. Properties08:29 EDT Wednesday, May 15, 2013
MISSISSAUGA, ONTARIO--(Marketwired - May 15, 2013) - Chartwell Retirement Residences ("Chartwell") (TSX:CSH.UN) announced today that it has entered into an agreement to sell a portfolio of seven seniors living communities comprised of 613 suites located in Arizona, Georgia, Louisiana, Oklahoma and Alabama (collectively, the "Portfolio") to an affiliate of Brookdale Senior Living Inc. ("Brookdale"), a current manager of six of these properties.
The purchase price for the Portfolio will be U.S. $80.9 million and will be partially settled through the assumption by Brookdale of mortgage debt secured by the Portfolio with an outstanding balance of approximately U.S. $60.6 million as of the date of this release. The balance of the purchase price, subject to customary closing adjustments, will be paid in cash. Brookdale has completed its due diligence and the closing of the transaction, subject to regulatory and lender approvals is expected in Q3 2013.
"The sale of this Portfolio is in line with our strategy to focus our investments in the United States in our core states of Florida, Texas and Colorado," commented Brent Binions, Chartwell's President and CEO. "We value our relationship with Brookdale and are pleased to see them acquiring the Portfolio which will result in a smooth transition for the residents and staff at these properties."
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 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Chartwell Retirement Residences
Chief Financial Officer
(905) 501-4710 (FAX)