Chartwell Retirement Residences (CSH-UN-T) today announced roughly $237.9 million in strategic investments across three provinces as it grows its development pipeline.

The company, one of the most active investors in the seniors housing sector, announced the completed acquisition of a 50 per cent ownership stake of a 283-suite residence in Candiac, Que., which was developed in partnership with EMD-Batimo.

In addition, Chartwell is set to start construction on three new seniors' residences and has a fourth undergoing a significant expansion.

"These investments reflect Chartwell's continued commitment to expanding our portfolio through disciplined capital allocation and strategic partnerships with experienced developers," said chief investment officer Jonathan Boulakia, in the announcement.

"This approach enhances our future acquisition pipeline, strengthens our presence in key growth areas across Canada, and positions Chartwell to meet the increasing demand for high-quality seniors housing."

Development activity and forward purchase agreements

According to the announcement, Chartwell has initiated the development of four residences in Quebec, Alberta and British Columbia, with a total of 828 suites offering a mix of seniors' apartments, independent living and memory living.

Residence Légende

The company started construction on the expansion of Residence Légende in May, in partnership with EMD-Batimo. It will add an additional 218 independent living suites to the existing 368-suite residence, which is wholly owned and managed by Chartwell. It has 96 per cent occupancy.

"Chartwell will manage operations and is subject to forward purchase arrangements that, subject to certain conditions, are expected to result in a 100 per cent ownership interest in the expansion once it reaches stabilization," the announcement said. "Chartwell is exploring with EMD-Batimo investing equity into this development expansion project."

Three new residences are set to start construction in August and September with two located in Edmonton and the other to be built in Vernon, B.C.

Chartwell Summerlea

Chartwell has committed to forward purchase agreements for a 50 per cent ownership of Chartwell Summerlea, a 202-suite residence in Edmonton, is being developed by Hestia Construction.

Located in close proximity to West Edmonton Mall, the residence will offer a mix of independent living and seniors' apartment suites with a-la-carte services available to residents.

"Chartwell will manage operations of the property and is subject to forward purchase arrangements that, subject to certain conditions, are expected to result in Chartwell acquiring an initial 50 per cent ownership interest for $51 million after completion of construction, expected in November 2028, and the remaining 50 per cent ownership interest (subject to a vendor right to retain a 15 per cent interest) upon stabilization at fair market value," the announcement said.

"The net operating income at stabilization is estimated to be $7 million."

Partnership in Edmonton

The company also announced it will partner with Eagle Builders and K&H Developments on the construction of a 262-suite residence within the Century Park master-planned community in Edmonton.

Forward purchase agreements, subject to conditions, will give Chartwell a 50 per cent ownership interest in the project for $68.1 million and the remaining 50 per cent ownership interest upon stabilization and fair market value. "The net operating income at stabilization is estimated to be $9.3 million," the announcement said.

"The residence will feature a mix of seniors' apartment, independent living and memory living suites, with Chartwell serving as operator upon opening."

Chartwell Carrington Apartments

In Vernon, B.C., Chartwell is developing a 146-suite seniors' apartment residence with Troika Developments, in partnership with Hallmark Communities.

Chartwell will acquire a full ownership interest in the project for $75.5 million after construction completion, expected in September 2028, the announcement said, and expects to provide a $3.5 million mezzanine loan to the developers.

The property will be adjacent to the existing 135-suite Chartwell Carrington Place residence in Vernon's downtown district.

Chartwell Le Montcalm acquisition details

Chartwell's $43.3-million acquisition of a 50 per cent interest in the 283-suite Chartwell Montcalm in Candiac, Que., closed on July 16.

"The purchase price, before closing costs and working capital adjustments, for Chartwell's share was $43.3 million and was partially settled through the assumption of existing debt of $22.3 million, bearing interest at six per cent and maturing on Oct. 1, 2026, with the remainder paid in cash," the announcement said.

Chartwell manages the residence, with the current occupancy at 99 per cent, and is collaborating with development partner EMD-Batimo on plans for a future expansion of the community.

Disposition of nine properties

Chartwell also announced the close the previously announced sale of nine properties in Ontario for $117.9 million to Prima Living. "Net proceeds of the sale were $82.3 million after $2 million of transaction costs and repayment of $33.6 million of mortgages with a weighted average interest rate of 3.3 per cent and weighted average term to maturity of 4.3 years," the announcement said.

"The demand for retirement living continues to grow, and we're proud to lead retirement residence development across Canada," said CEO Vlad Volodarski.

"By collaborating with trusted partners, we're expanding choice for Canadians and creating high-quality communities designed to meet the needs of future residents."