Chartwell Completes Acquisition of Remaining JV Interests in Quebec Property Manager, Properties
- Oct 30, 2008
Chartwell Seniors Housing Real Estate Investment Trust and Groupe Melior has announced that Chartwell has completed the acquisition of the remaining 50 percent interest owned by Residences Melior (an affiliate of Groupe Melior) in seven retirement properties in the Province of Quebec, as well as Melior’s 50 percent interest in the joint venture property management company managing all of Chartwell’s senior housing communities in Quebec. Under the terms of an agreement with Melior, Chartwell paid approximately $63.3 million for the 50 percent interest in the seven properties and the management company. The price was determined by independent appraisers. The closing was funded with cash on hand of approximately $14 million, with the remainder of the purchase price being satisfied by the assumption of mortgages of approximately $46.1 million, bearing a weighted average interest rate of 4.8% and having a remaining term of 2.75 years, the assumption of other liabilities of approximately $0.5 million, and the discharge of approximately $2.7 million of mezzanine loans issued by Chartwell. The seven communities in which Chartwell purchased the 50% interest that it did not already own are as follows: Monastere d’Aylmer in Aylmer containing 272 suites, Notre Dame de Hull in Hull containing 225 suites, Marquis de Tracy I in Sorel containing 123 suites, Marquis de Tracy II in Sorel containing 138 suites, Domaine du Chateau de Bordeaux in Quebec City containing 150 suites, Residence Principale in Cowansville containing 197 suites, Residence St-Pierre in Rouyn-Noranda containing 121 suites. In addition, Chartwell announced today that internal growth projects on three of Chartwell’s properties in Quebec are completed with the new space now in lease-up. Residence Ste-Marthe in St. Hyacinthe, Manoir Pierrefonds in Montreal, and Maison Herron in Dorval have added an aggregate of 278 suites to the portfolio, and Chartwell is in the process of marketing these new suites in each of their strong markets.