Developer acquires stake in retirement residence in Quebec

Firm considers the property a “well-located residence in a strong market”

Developer acquires stake in retirement residence in Quebec
Duffie Osental

A leading seniors housing developer completed its acquisition of a significant stake in a retirement residence in Quebec.

Chartwell Retirement Residences completed its acquisition of a 42.5% interest in the Chartwell Le St-Gabriel retirement complex from development partner Batimo in a transaction valued at $37.9 million. Real estate investment trust company Welltower also acquired a 42.5% interest in the property, and Batimo will retain a 15% interest.

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Chartwell Le St-Gabriel is a 345-suite residence offering 313 independent living and 21 assisted living suites in Saint-Hubert, Quebec.  Developed by Batimo and managed by Chartwell, the residence opened in May 2018 and is currently 97% occupied.

The transaction was settled by the assumption of an existing mortgage of $23.9 million, at Chartwell's share, and the settlement of Chartwell's mezzanine loan of $3.6 million, with the balance paid in cash. Chartwell will continue to manage the property under the incentive-based management contract.

"We are pleased to grow our partnerships with Welltower and Batimo with this new, high-quality, well-located residence in a strong market,” said Vlad Volodarski, chief financial officer and chief investment officer at Chartwell. “The successful lease-up of this residence is a testament to the outstanding work of Chartwell's and Batimo's teams in designing, developing and operating this property. We are looking forward to many years of delivering exceptional resident experience and quality care at Chartwell Le St-Gabriel.”