Chartwell Retirement Residences (CSH-UN-T) has agreements to acquire three Quebec properties comprising almost 950 suites for $315.2 million, and has commenced development of its Chartwell Kingsview Retirement Residence in Calgary.

The announcement was made Thursday morning by Chartwell, which has been on an extended acquisition and expansion spree in recent months, with a strong focus on Quebec.

The announcement also noted the completion of the previously released acquisition of the 449-suite Les Tours Angrignon in Montreal, and an upgrade in the company’s trend rating by Morningstar DBRS to positive from stable, while confirming its BBB (low) rating. 

"We are pleased to continue our strategic growth by acquiring modern, efficient, and highly desirable properties in dynamic urban markets at a significant discount to replacement costs," Jonathan Boulakia, Chartwell’s chief investment officer, said in the announcement. 

"While we have been successful sourcing high quality acquisitions over the past 24 months, we have also been busy laying the groundwork to build an important pipeline of future acquisition opportunities, including through strategic development partnerships."

The properties Chartwell is acquiring

In addition to closing on Les Tours Angrignon, the updates include:

• an agreement to acquire the 238-suite Residence Panorama in Laval;
• an agreement to acquire the 334-suite Residence Azalis in Repentigny;
• an agreement to acquire the 376-suite Residence L'Aubier in Levis;
• construction has begun at the 111-suite Chartwell Kingsview Retirement Residence in Calgary;
• completion of a $250-million equity raise through Chartwell's at-the-market distribution program; and
• completion of $87 million of new CMHC-insured financing.

About the acquisitions

Residence Panorama includes 206 independent living and 32 assisted living units, as well as 49 individually-owned condominium suites in a 31-storey tower overlooking the Riviere-des-Prairies. Built in 2018, the residence offers state-of-the-art amenities and is 98 per cent occupied. The purchase price of $76 million is to be settled in cash. 

The residence will be branded Chartwell Panorama.

Residence Azalis includes 304 independent living and 30 assisted living units in a 30-storey tower overlooking the St. Lawrence River. Built in 2021, the residence offers state-of-the-art amenities and is 97 per cent occupied. 

The $111-million price is to be settled in cash. The residence will be branded Chartwell Azalis.

Developed by Chartwell's long-standing partner EMD-Batimo, Residence L'Aubier includes 340 independent living and 36 assisted living suites and provides state-of-the-art indoor and outdoor amenities for its residents. 

It opened in June 2024 and is 82 per cent occupied. Chartwell has managed operations at this residence since its opening. The purchase price is $128.2 million.

All three acquisitions are expected to close by the end of 2025.

Chartwell Kingsview, financing activity

Chartwell has begun development of the 111-suite Chartwell Kingsview Retirement Residence in Calgary with an advance of $4.5 million of the $6.5-million mezzanine financing to local developers. Chartwell will manage operations during the project and have a call option to acquire the residence on stabilization. 

The project is in an affluent residential area of Calgary, near a range of neighborhood amenities. It will offer self-contained independent living apartments and an amenity package.

To raise the $250 million in new equity, Chartwell issued 13.7 million units at an average price of $18.27.

In July, Chartwell also completed two CMHC-insured financings on previously unencumbered properties for a total of $87 million. The new mortgages are at a 4.33 per cent interest rate and mature in August 2035.

"The successful execution of our ATM program and mortgage financings enables us to support strategic growth of our portfolio while ensuring prudent debt leverage management within our established targets," Jeffrey Brown, Chartwell's chief financial officer, said in the announcement. "We are pleased with Morningstar DBRS' recognition of our efforts in improving our operating performance, enhancing our property portfolio, and maintaining prudent capital management."

About Chartwell

Chartwell is an unincorporated, open-ended real estate trust which indirectly owns and operates a range of seniors housing communities, from independent living through to assisted living and long term care. 

Chartwell is one of the largest operators in Canada, serving approximately 25,000 residents in four provinces across the country.