Chartwell to be Biggest Retirement Home Operator in Canada

Canadians are living longer and Baby Boomers are retiring

Canadians are living longer and Baby Boomers are retiring, thus the demand for seniors’ communities is growing.

Real Estate Investment Trusts strike huge deal

An investment deal has been struck between Chartwell Seniors Housing REIT and US based Health Care REIT Inc. to make Chartwell the largest retirement home operator in Canada.

George Chapman, CEO of the Toledo, Ohio based company Health Care REIT Inc., says in an interview that the housing market for seniors will grow as Baby Boomers retire and speculation of the demand in this specific housing market is positive.

Chapman also says that they are pleased to be making an investment in the Canadian seniors housing market. The Canadian economy is strong and investing together with Chartwell is allowing them to work with an operator that’s established a reputation of excellent service and quality to their residents. Chapman says that Health Care REIT has great confidence in Chartwell’s ongoing ability to successfully manage the communities.

More about the two Real Estate Investment Trusts
The two Real Estate Investment Trusts will spend $850,000 for 39 properties and Health Care REIT Inc. will spend $81 million for three additional properties. Chartwell will manage all of the 42 seniors’ residences located in BC, Alberta, Ontario and Quebec.

Vlad Volodarski, Chief Financial Officer for Chartwell says that this deal not only adds to their existing portfolio but to their purchasing power. As of September 2011 Chartwell owned and operated 195 communities including more than 24,500 units across the continuum of seniors housing in North America. Chartwell is publicly traded on the Toronto stock exchange (TSX: CSH.UN).

The newly acquired 8,100 suites are 88 percent occupied and that is expected to jump to 90 percent over time. Volodarski says in an interview that their primary focus for growth will be in Canada and he hopes that this new partnership will attract the attention of seniors’ residence owners across Canada that might be wishing to put their units up for purchase.

Purchasing from Maestro Group and Closing the Deal
The retirement homes are being purchased from Maestro Group, a Canadian leader in the retirement residence industry. The structure of the Maestro Group allows for fund raising, financing, renovation and operation of retirement residences across Canada. They are well known under their banner Allegro Residences and they take pride in providing the highest quality of services to their residents.  

Health Care and Chartwell expect this acquisition to close in May 2012 subject to regulatory approvals. 

Fascinating population statistics
• In the year 2010, baby boomers started reaching age 65 raising the 65plus age group to 13 percent of the population of the United States.

• By 2050 the 65plus age group is expected to account for 20 percent of the population of the US.

• The average growth in the number of seniors in the next 20 – 25 years will be 3 – 4 times the actual population growth of Canada. 

• The Population Division of the UN predicts that by the year 2035, one fifth of the population worldwide is expected to be 65 and up.


By Alice Lucette

Find Senior Housing

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