Chartwell Retirement Residences (CSH-UN-T) has continued its expansion in the Quebec City region with the purchase of two recently-built residences, and the acquisition of the 15 per cent interest it did not already own in a third nearly new facility.

It total, Chartwell invested $247.9 million in the acquisitions. Chartwell was already managing the three facilities, which had been developed by Quebec construction firm EMD-Batimo.

The residences are:

• Résidence Le Florilège in Quebec City, with 345 suites and built in 2022, for $112.9 million;
• Chartwell L’Envol with 360 suites in the Cap-Rouge district of Quebec City, built in 2019, for $117.8 million; and
• Chartwell Trait-Carré residence in Charlesbourg, just outside Quebec City, built in 2021, for $17.2 million (Chartwell already owned an 85 per cent stake in this facility).

"These acquisitions of high quality, recently developed residences with strong occupancies below replacement cost will positively contribute to the overall quality of Chartwell's portfolio and expand our ownership presence in high-growth Quebec City and its surrounding neighborhoods,” Jonathan Boulakia, chief investment officer of Chartwell Retirement Residences, said in the announcement.

“The acquired properties are complementary to our existing Quebec portfolio and are already managed by Chartwell, which allows for a seamless integration into our platform. The transactions are consistent with our investment strategy to grow in strong markets with newer, high-quality assets which we believe will be competitive for many years." 

About Chartwell’s new properties

Résidence Le Florilège is in the Beauport neighbourhood on a major arterial road directly across from the Beauport Golf Club and near retail shopping and services. Le Florilège is 97 per cent occupied. 

The acquisition is being financed with cash and a $77.6 million loan maturing in six months and carrying an interest rate of Canadian Overnight Repo Rate Average plus 1.95 per cent.

The Chartwell L'Envol residences pour retraites was acquired in a separate transaction. It is comprised of 360 suites (36 care units) and is located within two kilometres of a major highway and near retail shopping amenities. L'Envol is 97 per cent occupied. 

The $117.8-million purchase price is being financed with cash and a $65.4 million loan maturing in six months with the same interest terms as the Florilège deal. A mezzanine loan of $4.2 million, extended by Chartwell to the previous owner, was settled at closing.

Chartwell Trait-Carré residence pour retraites is a 361-suite facility (37 are care units). Trait-Carré is 97 per cent occupied. 

The purchase price includes the proportionate assumption of $66.5 million financing in place at closing, with the balance settled in cash. The financing was repaid in full by Chartwell following closing of the transaction.

Chartwell’s growing Quebec portfolio

The residences are Chartwell’s most recent expansions in Quebec, where the company has been rapidly growing its seniors housing portfolio.

In June, it announced deals to acquire two portfolios in the province for a total of $511 million, giving it ownership interests in an additional 2,300 units.

It acquired sole ownership in five retirement residences with 1,428 suites in the Greater Montreal Area (GMA), Gatineau and Sherbrooke for $297 million (the GMA portfolio). It is also acquired 50 per cent ownership in a portfolio of five properties with 1,805 suites in the Quebec City area and Shawinigan (Quebec City portfolio) for $214 million.

The Quebec City portfolio interest was acquired from Fonds Champlain.

In August, Chartwell announced the acquisitions of 384 suites in three retirement communities on British Columbia's Vancouver Island for $226.9 million. One facility is in Victoria and two in Nanaimo. The properties are: Vista Retirement Residence, Nanaimo Memory Care and The Edgewater Retirement Residence.

About Chartwell

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

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