Chartwell Retirement Residences has completed its acquisition of a 30% ownership interest in Fengate Asset Management’s Seasons Retirement Communities portfolio for $382.5 million.

In addition, Chartwell expects to close Wednesday on the purchase of the 116-suite Palermo Village retirement residence in Oakville, Ont., for $43 million.

“These acquisitions reflect the continued execution of our disciplined investment strategy focused on expanding our presence in high-quality retirement communities located in attractive markets with strong long-term demand fundamentals,” said Jonathan Boulakia, chief investment officer and chief legal officer of Chartwell. “The Seasons portfolio transaction establishes a strategic partnership with Fengate while providing meaningful growth opportunities through operational optimization and future development potential. Combined with the acquisition of Palermo Village Retirement Residence, these transactions further strengthen our platform and position Chartwell for continued long-term value creation.”

The Seasons portfolio comprises 23 seniors housing communities with 2,943 suites in Ontario, British Columbia and Alberta, representing a total value of about $1.3 billion at 100% ownership. Fengate will retain a 70% ownership interest in the joint-venture.

The purchase price was funded through the assumption of approximately $208.8 million with a weighted-average interest rate of 4.48% and a weight-average term of 4.08 years, with the balance paid in cash.

Chartwell said the agreement also provides an opportunity to acquire an additional 20% interest in the portfolio if certain milestones are met and includes options to participate in future Fengate retirement residence developments in Ontario.

Situated in one of Ontario’s strong and growing retirement markets, the Palermo residence features a modern amenity offering, including contemporary dining venues, a theatre, spa and salon services, along with a variety of social and recreational gathering areas designed to support an engaging seniors lifestyle.

Pictured: Seasons Arbutus Walk seniors home in Vancouver.

Photo: Fengate/Seasons