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Chartwell discloses property transactions, secures C$125M term loan commitment


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Chartwell discloses property transactions, secures C$125M term loan commitment

Chartwell Retirement Residences closed its purchase of the Chartwell Emerald Hills Retirement Residence in Edmonton, Alberta, for C$120.0 million and secured a C$125.0 million unsecured term loan commitment due May 2024 with a Canadian chartered bank.

The 256-suite retirement residence is 45% occupied, including 72 suites funded by Alberta Health Services. The transaction is subject to a two-year C$7.5 million net operating income guarantee from the vendor to support the initial lease-up.

The term loan will carry interest at the bankers' acceptance rate, plus 145 basis points. It has a fixed rate via an interest rate swap arrangement with an effective interest rate of about 3.52%.

The Canadian healthcare facility operator will use proceeds from the term loan to repay the amounts outstanding on its credit facility.

Additionally, Chartwell and Batimo Inc. wrapped up the sale of a medical office building in Ste. Eustache, Quebec, for C$10.8 million. The REIT holds an 85% stake in the property.

A head lease was signed with the buyer for certain spaces in the Quebec building from Dec. 2, 2020, to April 30, 2022, with maximum financial exposure to the sellers of C$500,000.