ING, Chartwell Partner on $245M Portfolio Buy

MISSISAUGA, ONTARIO-Rapidly growing Chartwell Seniors Housing Real Estate Investment Trust has secured financing from ING Real Estate Australia for another eight long-term care facilities. The $245-million acquisition is the first joint Canadian deal by the two entities, which have partnered up for numerous purchases in the US.

“We are pleased to be extending our relationship with ING,” says Chartwell co-CEO Stephen Suske. “We look to involve them in further transactions as we build our position as the country’s largest owner and operator of retirement communities.” Chartwell plans to capitalize on an aging North American population to grow both internally and through acquisitions, says Suske, whose firm has been active on the latter front. Besides the Regency Care portfolio involving ING, Chartwell has acquired four other assisted living properties in recent months throughout Ontario, among then a 79-unit building in Sudbury, 90 units in Ottawa and a 323-unit complex in Mississauga.

ING Australia will give Chartwell half of the $87.5-million cash portion to pay for the Regency Care assets, while there will also be a $143.7-million assumption of mortgage debt by Chartwell at an average interest rate of 7.4%. Not only will the company own 1,384 long-term care beds in the eight facilities, Chartwell will also take over a contract to manage six long-term care properties encompassing another 814 beds.