The buying spree continues in Canada’s retirement living sector. Chartwell Retirement Residences (CSH-UN-T) has announced its latest acquisition, a portfolio of six southern Ontario properties comprising 1,024 suites for $432 million.

The properties are located in London (three sites), Dorchester, Waterloo and Mississauga and have all been operated by Sifton Properties. These represent the final six properties in Sifton’s seniors living portfolio, according to the company's website.

"This acquisition represents a significant strategic expansion for Chartwell in southwestern Ontario, one of Canada's most dynamic and growing seniors housing markets," Jonathan Boulakia, Chartwell's chief investment officer, said in the announcement Tuesday. "These communities have been designed for active, independent older adults and align with our continued focus on quality, operational excellence, and long-term value creation. 

“We are proud to welcome these residences to Chartwell as we continue to grow and serve more seniors with support and purpose."

The portfolio Chartwell is acquiring

The portfolio is comprised of six purpose-built seniors' communities, featuring a mix of independent living suites, apartments and townhomes. All residences are private pay and serve independent, low-acuity seniors.

The properties are:

• Riverstone, London (built in 2021 and 2023) – 124 retirement suites and 135 seniors apartments and townhomes; part of a net-zero campus with extensive solar infrastructure.
• Richmond Woods, London (built in 2007 and 2010) – 130 retirement suites and 112 seniors apartments and townhomes with community amenities.
• Longworth, London (2001) – 126 retirement suites in a residential neighbourhood with nearby community greenspace.
• Dorchester Terrace, Dorchester (2017) – 123 retirement suites with an additional 29 townhomes under development, expected to be completed by the vendor in Q4 2026.
• Westhill, Waterloo (built in 2012 and 2018) – 117 retirement suites and 100 seniors apartments; offering modern amenities in a growing urban region.
• Erinview, Mississauga (2019) – 57 retirement suites with potential for an additional 140 suites on excess land, currently leased to a third party.

Financing of the acquisition

At closing, Chartwell is to pay $416.2 million for the properties. The Dorchester Terrace townhomes are payable on construction completion, and will be $15.8 million. 

The $432 million price represents approximately $422,000 per suite - exclusive of the future development potential.

The purchase price at closing will be settled by assuming in-place debt of $232.7 million (the majority is CMHC-insured), and in part from proceeds of already-planned 2025 CMHC financings of approximately $240 million.

The assumed in-place debt has a weighted average interest rate of 4.50 per cent and weighted average maturity date of March 2045. Closing is expected in Q4 2025. 

TD Securities is acting as the financial advisor to the vendor.

"This acquisition reflects our continuing execution on a disciplined investment strategy focused on high-quality residences in markets with strong demographics and long-term demand fundamentals," Boulakia said in the announcement. "These communities not only enhance our portfolio with modern, purpose-built assets, but also provide a clear pathway for sustainable growth through asset optimization and targeted development opportunities."

Chartwell and its recent rapid growth

Chartwell is based in Mississauga and has been on a dramatic growth spree in recent months. During the past 15 months, it has acquired over $1.5 billion in new seniors living properties across Canada, and is also advancing several development sites.

Most recently, Chartwell announced the acquisition of the 449-suite les Tours Angrignon seniors living and care residence in Montreal for $88.5 million from Cogir.

It is also developing approximately 340 new seniors living units at two Quebec sites, in Vaudreuil-Dorion and Terrebonne, in conjunction with its partner EMD-Batimo.

Chartwell is one of the largest seniors living operators in Canada. It currently owns and operates over 170 facilities serving approximately 25,000 residents in four provinces across the country.