Lower than two years after ending a JV in Canada with Welltower (NYSE: WELL), Chartwell Retirement is rising North of the U.S. border.
This week, the Mississauga, Ontario-based firm introduced a $432 million deal to accumulate six communities in London, Waterloo, and Mississauga, Ontario. The six communities whole 1,024 models, composed of unbiased residing, residences and townhomes. A number of the communities embody issues like net-zero energy infrastructure, ample greenspace and trendy facilities, in accordance with Chartwell.
One of many six communities is including 29 townhomes as a part of a brand new growth mission anticipated to wrap up by the fourth quarter of 2026. One other neighborhood has “potential to develop a further 140 suites.”
Chartwell’s $432 million buy value equates to about $422,000 per unit. A consultant for Chartwell declined to reveal the portfolio’s vendor when reached by Senior Housing Information Thursday.
Chartwell is among the many largest senior residing operators in Canada, with about 25,000 residents residing in its roughly 160 communities.
The corporate is funding its acquisition by debt totaling $232.7 million and from proceeds of already deliberate 2025 financings representing about $240 million. TD Securities is the “unique monetary advisor to the seller of this portfolio,” Chartwell famous.
The deal is a “important strategic growth” for the corporate in southwestern Ontario, which Chartwell Chief Funding Officer Jonathan Boulakia referred to as “certainly one of Canada’s most dynamic and rising seniors housing markets.”
“These communities have been designed for lively, unbiased older adults and align with our continued deal with high quality, operational excellence, and long-term worth creation,” he stated. “These communities not solely improve our portfolio with trendy, purpose-built property, but additionally present a transparent pathway for sustainable development by asset optimization and focused growth alternatives.”
The transfer is notable given the truth that Welltower and different U.S.-based actual property funding trusts (REITs) are turning up the warmth in markets throughout Canada by buying properties there. In March, Welltower introduced it was buying Amica Senior Existence in Canada for a deal equal to virtually $3.2 billion USD. The REIT additionally has a rising administration platform within the nation with senior residing operator Cogir.
Chartwell had beforehand partnered with Welltower to personal and handle 39 properties in Ontario, Alberta, British Columbia and Quebec. In late 2023, the 2 firms agreed to finish their JV. As a part of that deal, Welltower turned over curiosity in 16 property and paid Chartwell $97.2 million in money, whereas Chartwell transferred possession of 23 property to Welltower.
