Retirement News : Seniors : Retirement company raises profile in BC

Retirement company raises profile in BC

Date Added: 26-05-2005

Chartwell Seniors Housing Real Estate Investment Trust is expanding its presence in British Columbia with an offer to buy all the outstanding shares of Vancouver-based CPAC (Care) Holdings Inc. in a deal worth $37.5-million.

Toronto-based Chartwell is offering $1.55 a share and also will assume $65.1-million in liabilities. The deal will be financed using available cash and existing lines of credit.

CPAC shares closed unchanged yesterday at 75 cents on the TSX Venture Exchange. Holders of 82 per cent of CPAC shares have already agreed to the Chartwell offer.

When the deal is completed, Chartwell will own 23 facilities in British Columbia, making it the largest owner and operator in the province. The deal also will give Chartwell its first facility on Vancouver Island, one of the country's fastest-growing retirement markets. The deal involves properties in Langley, South Surrey, Burnaby, Nanaimo and Qualicum Beach, and includes 1,357 suites, including 497 that are under development.

Under the terms of the deal, members of CPAC's management team will work for Chartwell. The purchase represents more than one-third of the REIT's target for acquisitions this year.

After the transaction is completed, which is expected to be in mid July, Chartwell will sell its interest in the Qualicum Beach properties to Spectrum Seniors Housing Development LP in keeping with the terms of its development agreement with that company. When that project is completed, the REIT will buy the property at a discount to appraised value from Spectrum.

CPAC was founded a decade ago and runs five seniors communities in the province. The company developed a concept called "campus of care," that allows residents to move from independent apartments and condominiums to assisted living quarters and long-term care facilities without changing locations.

RBC Dominion Securities Inc. acted as financial adviser to CPAC.

Units of Chartwell closed down 3 cents at $13.97 yesterday on the Toronto Stock Exchange.

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