Most government-funded facilities are located in Burnaby and Nanaimo.
Chartwell Retirement Homes plans to sell Chartwell Carlton Care Residences in Burnaby and Chartwell Malaspina Care Residences in Nanaimo for $112 million in transaction costs and other adjustments.
Government approvals are required, but Mississauga-based Chartwell (TSX: CSH-UN) said it expects the deal to close this year.
Calgary-based AgeCare Health Services Inc. And Montreal-based Axium Infrastructure plans to buy the properties after those companies agreed in March to buy 16 of Chartwell Ontario’s long-term care homes.
Ontario’s long-term care management platform serving six more homes to AgeCare. AgeCare and Axium are buying an Ontario care home that Chartwell is building.
“Years of significant growth in our retirement portfolio and the recently announced transition to Ontario’s long-term care platform led us to decide to sell these long-term care homes in British Columbia,” Chartwell CEO Vlad Wolodarsky said in a statement. press release.
“It was imperative that these properties be sold to a strong and reputable organization that shares the same values as Chartwell to ensure a smooth transition for our residents and staff.”
The experience of working with AgeCare and Axium “reinforces my belief that they are the right partners,” Wolodarski said.
Chartwell spent $27 million in 2012 and 2013 to redevelop the Chartwell Carlton care home. Fraser Health donates millions of dollars each year to support 117 beds in the 128-bed facility. Subsidized residents in long-term care pay up to 80 percent of their after-tax income to the facility, the upper and lower limits. The site’s other 11 beds are privately paid for.
Chartwell Malaspina Care has 136 units, 135 of which are publicly subsidized by Island Health and one privately funded unit. Chartwell paid $27.4 million to redevelop that home in 2016 so it will be open to residents in 2017.
Chartwell is the largest operator of senior living facilities, including more than 200 properties under construction in four states, according to the company.
Chartwell announced the transaction on Aug. 12 but did not name the homes it was selling. Shares have fallen more than 10 percent since then, and closed at $10.80 today (August 22).
