Chartwell Retirement Residences selling Ontario long-term care homes

The Chartwell logo is shown in Quebec City, Tuesday, Nov. 26, 2019. THE CANADIAN PRESS/Jacques Boissinot

Chartwell Retirement Residences has signed a deal to sell 16 Ontario long-term care homes as well as its management platform and another home under development to AgeCare Health Services Inc. and Axium Infrastructure Inc. and its affiliates.

The company says the total value of the deal is $446.5 million. The net proceeds to Chartwell after property-specific debt, taxes and closing costs are expected to be about $277 million.

Chartwell CEO Vlad Volodarski says the sale is part of the company's plan to focus on its growing retirement business.

Under the deal, the buyers will acquire 16 long-term care homes with 2,418 beds. AgeCare will assume management of the homes as well as an additional six homes with 866 beds managed by Chartwell, including two homes with 258 beds which Chartwell will continue to own.

The agreement also includes a 224-bed home in Ajax, Ont., that is under development. AgeCare will assume management of the existing 100-bed home in operation on that site and will acquire the home when the development is complete in the third quarter of 2023.

The company says the transactions are subject to various government approvals, which are expected to take up to 12 months.

This report by The Canadian Press was first published March 31, 2022.