|By Marketwired .||
|June 18, 2014 06:42 AM EDT||
MISSISSAUGA, ONTARIO -- (Marketwired) -- 06/18/14 -- Chartwell Retirement Residences ("Chartwell") (TSX: CSH.UN) announced today that it entered into a definitive agreement to sell four U.S. properties comprised of 827 suites located in Alabama, Michigan, Oklahoma and Tennessee (the "Portfolio"). The purchaser is a joint venture between Focus Healthcare Partners and Garrison Street Partners.
The sale price for the Portfolio is USD $136.1 million. It is currently encumbered by mortgages of approximately USD $86.4 million bearing interest at a weighted average rate of 6.27% per annum and maturing in June of 2016. These mortgages will be discharged at closing which, subject to limited conditions, is expected in the third quarter of 2014.
"This transaction is in line with our strategy to concentrate our U.S. investments in our core states of Florida, Texas and Colorado," commented Brent Binions, Chartwell's President and CEO.
Chartwell is an unincorporated, open-ended trust which indirectly owns and operates a complete range of seniors housing communities 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 seniors housing communities, and to prudently avail itself of opportunities to grow internally and through accretive and strategic acquisitions.
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. 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. 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 more fully described in the "Risks and Uncertainties" section in Chartwell's MD&A and 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.
Chartwell Retirement Residences
Chief Financial Officer
(905) 501-4710 (FAX)