Chartwell sells retirement residences in Mississauga, Burlington and Oakville
Published March 31, 2022 at 9:31 am
Chartwell Retirement Residences has signed a deal to sell 16 Ontario long-term care homes as well as its management platform and another home under development to AgeCare Health Services Inc. and Axium Infrastructure Inc. and its affiliates.
The sold homes include Wenleigh Centre Long Term Care in Mississauga, Waterford Long Term Care in Oakville and Brant Centre Long Term Care in Burlington.
AgeCare will also assume management at Cawthra Gardens and Villa Forum Long Term Care in Mississauga, and Regina Gardens and Queens Gardens Long Term Care in Hamilton.
The company says the total value of the deal is $446.5 million. The net proceeds to Chartwell after property-specific debt, taxes and closing costs are expected to be about $277 million.
Chartwell CEO Vlad Volodarski says the sale is part of the company’s plan to focus on its growing retirement business.
Under the deal, the buyers will acquire 16 long-term care homes with 2,418 beds. AgeCare will assume management of the homes as well as an additional six homes with 866 beds managed by Chartwell, including two homes with 258 beds which Chartwell will continue to own.
The agreement also includes a 224-bed home in Ajax, Ont., that is under development. AgeCare will assume management of the existing 100-bed home in operation on that site and will acquire the home when the development is complete in the third quarter of 2023.
The company says the transactions are subject to various government approvals, which are expected to take up to 12 months.
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