MISSISSAUGA, ON — February 29, 2016 – Chartwell Retirement Residences announced today that it has entered into a definitive agreement to acquire the Duke of Devonshire Retirement Residence in Ottawa, Ontario for $63.6 million.
The Duke of Devonshire is a high-end residence that enjoys a unique location in downtown Ottawa adjacent to the Ottawa Hospital (Civic Campus) and in close proximity to a range of local restaurants, shopping and businesses. Opened in 2009, the Duke of Devonshire has 105 suites which are currently 93% occupied. The residence has an underground parking garage in which 215 parking spaces are leased to the Ottawa Hospital under a lease agreement expiring in June 2025, with annual lease payments of $0.4 million increasing 1% per annum. The purchase price will be settled by the assumption of a $34.0 million mortgage bearing interest at 4.41% and maturing in September 2024, with the balance to be paid in cash. The closing of this transaction is expected to take place on March 15, 2016 and Chartwell expects to generate a first-year unlevered yield of 6.5%.
“We are pleased to add this luxury residence to our portfolio. The Duke of Devonshire complements our already strong presence in the Ottawa market allowing for further management and operating efficiencies,” commented Vlad Volodarski, Chartwell’s Chief Financial Officer and Chief Investment Officer. “We look forward to welcoming the residents and staff of the Duke of Devonshire to the Chartwell family.”
For more information, please contact:
Chartwell Retirement Residences
Chief Financial Officer and Chief Investment Officer
Tel: (905) 501-4709
Fax: (905) 501-4710