Business
Chartwell Further Strengthens its Portfolio and Liquidity
Chartwell Further Strengthens its Portfolio and Liquidity Canada NewsWire MISSIS...
About this update from Chartwell Retirement Residences
[{"type":"text","content":"\n\n\n\nChartwell Further Strengthens its Portfolio and Liquidity\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nMISSISSAUGA, ON, Dec. 12, 2019\n\n\n\nMISSISSAUGA, ON, Dec. 12, 2019 /CNW/ - Chartwell Retirement Residences (\"Chartwell\") (TSX: CSH.UN) announced today that it completed the acquisition of a 256-suite retirement residence in Edmonton, Alberta; entered into a borrowing agreement with a Canadian chartered bank for a $125 million unsecured term loan; and completed the sale of its interest in a medical office building located in Ste. Eustache, Quebec.\n\n \n \n\n \nChartwell completed the previously-announced acquisition of Chartwell Emerald Hills Retirement Residence located in the vibrant Sherwood Park community of Edmonton, Alberta. The residence consists of 184 private pay independent supportive living suites and 72 suites funded by Alberta Health Services (\"AHS\").  The residence began welcoming residents on November 8, 2019, and including the AHS funded suites, is currently 45% leased.  The purchase price of $120.0 million, before certain closing adjustments, was set in a forward-purchase agreement entered into in 2017.  Chartwell expects to generate a 6.5% unlevered yield on its investment upon the residence achieving stabilized occupancy of 96%.  The acquisition is subject to a $7.5 million net operating income guarantee from the vendor for a period of two years to support the initial lease-up. \nChartwell also entered into a firm commitment with a Canadian chartered bank for a $125.0 million unsecured term loan (the \"Term Loan\"). The Term Loan will bear interest at the bankers' acceptance rate plus 145 basis points and will mature in May 2024.  Chartwell has fixed the rate on the Term Loan through an interest rate swap arrangement with a resulting effective interest rate of approximately 3.52%.  The proceeds of the Term Loan will be used to repay the amounts outstanding on Chartwell's credit facility. \nChartwell and Batimo Inc. (the \"Owners\") completed the sale of a medical office building located...